Never Go into a Bidding War Unprepared Again

Posted on

With a bidding war on the horizon, make sure you and your client are well-prepared to do battle.

When multiple buyers are interested in a property, what ensues is a bidding war. This can be a stressful situation for everyone involved—both buyers and agents. During peak season, the competitive nature of house buying can get especially heated in certain neighborhoods. Avoid The Hunger Games-level headache when it comes to bidding wars, and know what to expect—and what your clients should expect—when dealing with this common real estate issue.

When more than one person as pegged them same house as their dream home, it’s common to have multiple, comparable offers. But it’s not just promises of paying more than asking you need to contend with. There are also the steps potential buyers take to make sure they have a leg up on the competition—like writing a personal letter to the seller, and getting preapproved (not just prequalified) for a mortgage. All of this is well and good, but it does make the process more hectic for the Realtor®. Still, it’s part of your job as an agent, so follow these tips and be better prepared to go to war.

Ready your client for the best and the worst

Communication is key. With a bidding war on the horizon, you want to make sure your client is prepared for what could be a disappointing result. Explain to them the ins and outs of what exactly a bidding war is. Many people may think they know what this event entails because they see real estate “reality” shows on television, but don’t assume. Fill them in on the kind of offer they should make, how quickly things may move, and any other possibilities they need to know to mentally prepare for what’s coming.

Know that there may be multiple cash offers presented

Be sure to reiterate to your client the importance of not getting too attached. You don’t want to assure them they will get their dream home, only to have them disappointed down the road. Try to keep them neutral, yet confident when making an offer. At the end of the day, buying a home is a business transaction.

Try and move as quickly as possible throughout the process

If your client is unsure about putting an offer down on a property with a lot of eyes on it, reinforce that fact. Once they’re aware of the urgency of putting a bid in, they’ll be a lot more likely to know whether they love the house or not. You should also invest in tech and processes that will streamline the process; for example, have an app on your phone that allows you to scan and send documents quickly. Efficiency will give you a leg up on the competition.

A bidding war can quickly get greedy and out of control on a hot property, but it’s your job to remain level-headed. That can be hard to do with the phrase “best and final” being shouted from the rooftops, so aim to stay organized and neutral, and encourage your clients to do the same.

Questions Every Seller Should Ask When Hiring A Real Estate Agent

More from ReminderMedia

Written by