How Do I Win a Bidding War?
In the past, I would have clients tell me, "I have no interest in participating in a bidding war," and then they would choose to move on to the next property. Most of these clients learn very quickly that the bidding war is not something they could avoid if they were serious about purchasing a property, and it's probably going to be this way for the near future. So instead of getting stressed out over something that's completely out of your control, let's focus on how to win that bidding war.
Number one, Asking price is not an indication of a home's market value. Good listing agents will recommend an asking price that will attract the most buyers to create the most demand for the home that they're selling. In today's market, the asking price is most likely the starting point for negotiations.
Number two: There's a famous line from The Godfather, where Al Pacino says to his brother Sonny, "It's not personal, it's strictly business." And nothing could be truer in a real estate transaction. As a buyer just put yourself in the seller shoes when you're negotiating and ask yourself, what would you want if you were selling your home? The highest sales price you could get, a buyer with least amount of demands, a buyer most qualified to buy your home. So you need to take emotions, add the equation and make your best offer you're able to make. If it doesn't work out, at least you know you put your best foot forward.
Number three: Make sure you're working with a realtor and lender that understands your market. There are creative ways to present an offer in a bidding war to stand out from the rest. You need every advantage you can get. Your realtor and lender are the most important tools in your toolbox. Don't get frustrated, don't give up and don't rely on luck. Knowledge is your greatest asset.
If you have questions, give me a call. Don Anfuso, your Mortgage Pro for Life.
Client Testimonials
- "This is now the third time in eight years I have worked with Don. Every time is easier than the last if that was even possible."
Kevin Alcott“As first-time homebuyers, we were hesitant and questioning a few things, but Don was always available and willing to answer any questions we had.”Nick Mattia“He told me what I needed to do and told me if I did it I would be in a house in 8 months and he was absolutely right.”Ryne Barry - "Don was always available when I had questions or doubts, was completely transparent and helped me make some very smart financial decisions."
Kate Lewis“As first-time homebuyers, Donald and his team made the process smooth, easy and fast! Always available to ask questions, even after work hours!”Renata Clasadonte Iannitelli“His honesty, consistent follow-up and advice were invaluable in our process and made us feel comfortable trusting this major milestone in his hands.”Anthony Loffredo - “He was clear and transparent in his every move and it was a fairly smooth process. He even sent a lovely housewarming gift that we adore. ”Kathy Capozzi“The process was seamless and Don was available to answer all of our questions timely and thoroughly. ”Jessica S."Don helped us buy and refinance our first house and was an invaluable asset as we navigated those complicated waters for the first time."G. Dicrosta
