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Getting Through Real Estate Investment ‘Bidding Wars’

I have written to you frequently about the fact that this market is now seeing bidding wars. And I have been proud to represent many of you in such. But it was very interesting to me to when I recently had a listing of my own which generated it’s own bidding war. It gave me a different perspective on this part of the business.

The seller and I had agreed to price the property somewhat aggressively, but not outrageously so. Even so, we had a total of 11 offers within a week after showing the property to 50 or 60 prospective buyers. What ended up being the ‘winning bid’ was considerably higher than almost all the rest.

I learned from talking with the buyer’s agent that he was not concerned at all with how much higher his offer might be than anyone else’s, or with how low a figure he might be able to get away with and still win the bid. He knew it was a highly sought after property with multiple offers, and he had predetermined what the highest amount of money he would be happy spending to have this property. And he simply shaped his offer accordingly.

This to me is a perfect template as to how one ought to go about it when confronted with a bidding:

a) Find a property you really love and can afford.
b) If it is a competitive property write an offer that is within your means but that is high enough that you feel is going to actually get you the property.
c) If you did that and you win the bid, don’t lose a minute’s sleep over ‘how much less you might have been able to pay and still win the bid.’
d) If you did that and you lose the bid, don’t lose a minute’s sleep over having lost the bid, because you know you wrote the most competitive offer you were willing and able to write.

This is truly the only way to go about it in this market if you want to get your ‘dream home.’

Call me and together we can find your dream home and make it happen.


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