Winning Buyer Strategies

Winning Strategies for Buyers In a Bidding War

Share this with someone
Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email
"Multiple offers" occur either when a seller receives more than one purchase offer at the same time or receives another offer before a counter offer is presented to the first buyer. This has occurred fairly often since 2012 and has created a frustrating environment for well-qualified buyers who repeatedly are out-bid in their attempts to buy a home.

Table of Contents

What Is a Bidding War?

A “Bidding War” refers to the home buyer situation in which there are multiple high bid offers on a home. This can be a very stressful time as a buyer, not knowing what might happen or the number of ways you might overpay. How can you avoid overpaying? Particularly for a money-pit of a home.

Edlen Team Strategies to Multiple Offer Situations

The following suggestions are based on my having participated in hundreds of multiple-offer negotiations and observing the various dynamics that can occur.

  • Ideally, being an “all-cash” buyer with the cash available or, at a minimum, being fully approved for financing before writing an offer, will usually give you the advantage.
  • Know the market inventory well by attending open houses and becoming familiar with what has recently actually sold.
  • Have a family or personal photo to be presented with your offer, as well as an introductory letter which your agent can help you prepare.
  • Be as rational and disciplined as you can, willing to either step up or pull back depending on the circumstances.
  • Take the long view. Remember that you may be living in this neighborhood for many years. The house can often be changed in various ways but the location cannot.
  • Ask your agent to counsel you on contract details that may improve your position at little cost or risk to you. A seasoned agent will know ways to make your offer stand out over others.
  • Be prepared to make decisions in a short amount of time, as timing your offer and any responses to the seller is essential to success.
  • Select an agent who has successfully guided many other buyers in multiple-offer situations.

Although the highest and best offer usually succeeds, it is not uncommon in this market that a seller will receive more than one strong offer. The seller will at times ultimately select the buyer based upon personal or other non-financial reasons rather than one who offers a higher price.

Don't forget to share this post!

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email
On Trend

Popular Stories

happy homeowners in kitchen smiling
Buying a Home
Tips For A Smooth Purchase Process for Home Buyers

Of course, there are occasional situations where a home has been purchased at a great price. However, as many disappointed buyers will attest, at least as of the beginning of August, we are still in a “seller’s market.” Many active buyers today falsely assume that this is a “buyer’s market”, and that they will be able to negotiate much lower than the listed price.

Read More »
1450 Bienveneda backyard
Selling a House
How to Find a Realtor to Sell Your Home—What to Do and What to Ask

When you’re buying or selling a house, you’ll likely reach out for a real estate agent. But how to choose? There are Realtors and just plain real estate agents, part-time and full-time agents, family friends who are in the business, maybe even neighbors down the street. How do you find the right real estate agent for you?

Read More »