Yes, multiple offers are back, and it’s a sign that the market is warming up. As either a buyer or seller, I have a few recommendations for you.
How To Handle a Bidding War - A Few Tips
• The highest offer isn’t always the best offer.You want to take a look at the contingencies in the contract. They could cause delays and more costs.
• Make your decision quickly.
• Do not decide to start looking for more than your asking price, the bidding can stop at any time and leave you with no offers.
• Always be mindful that you do need a buyer, so keep their interest in mind.
• Start with your best offer. A lowball offer will put you out of the running immediately – offer your best fair offer.
• Earnest money can make a difference. Increase your earnest money deposit to show the seller you are serious about closing and will not back out of the transaction.
• Pre-approval is a must in any market, and more so in a hot market. A mortgage pre-approval (or proof of funds for cash buyers) is a necessity.
• Find out what’s important to the seller. Ask your broker to find out the seller’s hot buttons in the transaction. Is the seller set to move ? Are they looking at purchasing another home once they find a buyer for their current home? Maybe they’re willing to accept a slightly lower price for a fast closing or an “as-is” contract.
• Sometimes you will want to waive contingencies. Depending on the condition of the home, your finances and/or the state of your local market, it may make sense to waive certain contingencies, such as a home inspection or mortgage financing. Waiving contingencies is something you really want to think out.
As I was putting together this blog, one of my Keuka Lake property listings became fodder for a bidding war. It came out of left field and caught me by surprise. It has been quite awhile since I have seen this type of market. It is actually very difficult for the seller to make a decision with multiple offers, especially when they know the parties . Staying professional and reminding your seller of their objectives will help them make the best decision for their needs.
Contact me anytime, and remember I always appreciate your referrals.
This information brought to you by Mary St.George, Associate Broker, Wine Trail Properties, 315-719-8377