How House Sellers Should Navigate Bidding Wars
Selling your home can be a very confusing process to get through. You might be wondering, “What is my home worth?” and “How do I attract buyers to my home?” These are valid questions to ask and come with the prospect of selling your home. In some scenarios, you may even have several buyers interested in your home, buyers who then engage in a bidding war. So how can you navigate this bidding war, and what can you do to ensure that you get the best offer from it? Let’s take a look.
Listen to Your Real Estate Agent
One of the most important parts of navigating through a bidding war as a seller is to listen to your real estate agent. Your real estate agent likely has a lot more knowledge about the local real estate market than you do, meaning they’ll be able to make much more educated decisions. However, knowledge and experience aren’t the only things that a real estate agent can bring to the table. Real estate agents also have lots of experience and training in negotiations, which can be a huge help when it comes to bidding wars. Finally, real estate agents have a wide variety of connections with other people in the real estate industry, connections that can be key in getting a bidding war started and making it through it. If you want to successfully navigate a bidding war, you’re likely going to need to rely on a real estate agent.
Set a Good Price
If you want to start a bidding war and successfully navigate through it, then you’re going to need to set a good initial price. The best way to do this is by setting a price that is just below market value, a tantalizing prospect that will attract many buyers to your home. Doing so will attract a wide variety of buyers, many of who will make offers on your home. When there are’ several offers on your home, a bidding war will commence. In fact, one of the potential buyers might be so entranced by your home that they bid way over its market value just to secure it. If you want a successful bidding war, you’re going to need to lure in various buyers with a good initial price.
Place a Time Limit
Another great way to navigate a bidding war is to establish a time limit for receiving offers. Establishing an artificial time crunch can pressure buyers into making higher bids, making the price of your home rise. When there is a deadline present, people tend to make bold and rash decisions. They don’t want to miss out or potentially make a mistake, and a deadline doesn’t give them that much time to contemplate the various options. As a result, placing a deadline for offers on your home can persuade some buyers to be bolder and more rash with the bids they place on your home, allowing you to get the most out of the bidding war.
Market Your Home
As mentioned before, the more buyers interested in your home, the more likely that the bidding war will end in your favor. Due to this, it’s in your best interest to market your home to the best of your ability. The better you market your home and get word out about it, the more buyers you will attract. When there are a lot of buyers interested in a home, the buyers will jack up the price with their individual bids. As a result, the better you market your home, the more likely you will come out on top of the bidding war as a seller.