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  • Bidding Wars in Real Estate Sales

    How to handle Multiple Offers When Selling a House

    Throughout most areas in the United States, there has been a shift from a buyer's market to one that favors sellers. The change has been dramatic. While real estate values had gone backward for the better part of seven years from 2005 to 2012, real estate has pretty much corrected itself.

    In fact, inventory levels in many states are dramatically low. With so few homes for sale, it has created an environment that favors sellers. Buyers are finding the housing search to be very difficult. In many locations, there are bidding wars to get homes. Given the current real estate conditions it is imperative that sellers know how to deal with multiple offers on their house. Fielding multiple offers have become the norm and not the exception in many places. This can be a dream come true for those who are selling their homes.

    The key, however, is to know how to manage to deal with a bidding war. The goal should be to pick the best offer that fits your needs. Some owners get caught up in the price and don't even consider there are other terms in a real estate contract. This can be a huge mistake. Often is takes a skilled real estate agent to point out the fact that price is important but not the end all be all.

    There is no point in accepting the highest offer if you never reach the closing table. Getting a seller to realize this can sometimes be a challenge. When you are fielding multiple bids of a home, you're bound to see some varying terms. Some buyers may be putting down huge down payments, while others could be highly leveraged. There is also the possibility that someone could step up to the plate and offer cash.

    Not having to wait for a buyer to get mortgage approval can be very appealing. There is a reason they say cash is king. When you are in a bidding war, the price will often be bid up way over the market value. If you have ever been to an auction, this point couldn't be clearer. People get emotional when they find themselves in a bidding war. The win at all costs attitude can end up being costly. Probably a good reason why there is more buyer's remorse when a bidding war occurs.

    Selecting the right deal becomes paramount when you are dealing with multiple offers. In the reference above, you will see a comprehensive review of everything you should be thinking about when you are working with multiple offers. Don't let a bidding war cloud your better judgment. The article will give you a great handle on some of the most important considerations to think about.


  • #2
    Hi,
    Great and valuable information for real estate buyers and sellers.
    Thanks!!

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    massrealty One of the top RE/MAX agents in New England over the last decade. Find out more about massrealty

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