When the real estate market favors home sellers, it is not uncommon for homes to receive multiple offers and for bidding wars to occur. In fact, in some circumstances, not having a bidding war can be unusual. Bidding wars are becoming more common when purchasing a home in the current market conditions.
In a hot real estate market, it is typical for sellers to receive multiple offers for their property. If the market is particularly strong, these offers may become highly competitive, with buyers making higher and higher bids. Some sellers may also purposely price their home lower than its true value to generate a bidding war.
As a home seller, it's important to understand how to handle a bidding war. When faced with multiple offers, it's important to choose the one that works best for you, and that does not always mean choosing the highest bid. While buyers may be focused on winning a bidding war, sellers should also be aware of how to navigate the process and make the best decision for themselves.
Understanding bidding wars
A bidding war on a home is when multiple buyers are interested in purchasing the same property and they submit offers to the seller. Some of the offers may be higher than the asking price. The seller then has the option to choose the offer they believe is the best one. This can drive up the prices of homes and make the process of buying a home more competitive for potential buyers.
Looking to start a bidding war?
Pricing your home correctly is crucial in generating multiple offers. A real estate agent can provide you with information about comparable home sales and help you price your home correctly. Pricing your home too high may discourage potential buyers, while pricing it too low may attract a bidding war, but it's also important not to undersell your home.
Staging your home, making small repairs and upgrades, and keeping it clean and tidy will make it more appealing to potential buyers. This can also increase the chances of a bidding war and help you get a higher price for your home.
Remember, a bidding war can take time, and it's important to be patient and let the process unfold naturally. Trust your real estate agent, and remember that the right buyer will come along.
What to do during a bidding war
When you receive multiple offers, be prepared to evaluate each one and choose the one that works best for you. Some options to consider include going back to all offers with a “best and final” where you ask each party to come back with their highest bid and best terms. Another option is to accept one of the offers on the table if one stands out as being significantly better than the rest. You can also choose to negotiate with one or more offers but exclude others on the table if they have low bids or unacceptable terms. If none of the offers are suitable, you can choose to reject all of them. Along with the price, consider the terms of the offer, such as the closing date, contingencies, and any contingencies the buyer may want you to accept.
It's also important to note that according to the Realtor Code of Ethics, multiple offers do not have to be disclosed, but many sellers may choose to do so. Your real estate agent can also reveal when asked if an offer is from the listing agent, another agent in the same firm, or a co-broke.
Keep in mind that while a bidding war may result in a higher sale price, it also comes with a higher level of stress and uncertainty. Be realistic about your expectations and be prepared to make a decision that is best for you and your family, relying on logic and not emotions.
A skilled and experienced real estate agent can guide you through the process of a bidding war, help you navigate offers, and negotiate on your behalf. Once you have accepted an offer, be prepared to move quickly and get your home ready for closing.
Expertise in selling Orlando homes
As a seller, it's essential to have a clear understanding of your priorities and goals and to work with an experienced real estate agent who can guide you through the process. Marissa Crawford of Core4 Group is an excellent choice, with over 15 years of real estate experience to help you navigate the market and find the best offer for your home. With her extensive knowledge and experience, you can be sure that you will be in good hands throughout the process.
*Header photo courtesy of Core 4 Group