How Do Bidding Wars Work?

The short answer is they work how the Seller wants them to work.

As a buyer you are looking for some set rules of conduct but they just do not exist.

A Seller could shut down he bidding process without warning at any time and pick the offer that suits them best.

It could be because it is the highest price, the best close date or they really liked one of the buyers. You have to keep in mind it is the Seller’s property and they get to decide.

Most of the time it comes down to the $$$ of course. Top dollar and the offer structure that suits the Seller best.

In the current market we are seeing Seller’s provide offer deadlines. "All offers in by Wednesday at noon." This might be the only chance a buyer gets at the property. The owner could just pick one from this batch of offers.

Often the Seller comes back and asks for best and final or highest and best. You can tell it it is a real bidding war when the Seller comes back again and asks for new bids.

At this point the Seller might go back to one party they consider the best and work to lock it up with them while keeping the other bidders on hold.

If you are a Buyer in a multiple bid situation you should always go in with your best bid. Win or lose. Happy if you win and feel like you took your best shot if you lose.

Don’t just assume there will be multiple bids and do not just assume it will go over asking. Do your homework so you can establish your own range of value.

Bidding Wars are stressful for everyone. INCLUDING THE SELLER. An experienced real estate agent will know how to handle the process so you do not end up making enemies and to make sure you finish with the best possible deal.

Contact Stephen

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Boston, MA 02116