When multiple buyers are interested in a property, what ensues is a bidding war. This can be a stressful situation for everyone involved—for both the buyers and the 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 you’re clients should expect—when dealing with this common real estate issue.
When more than one person wants their dream home, it’s common to have multiple, comparable offers. Not to mention the preparations potential buyers make to make sure they have a leg up on the competition—like writing a personal letter to the seller, and making sure they’re pre-approved for a mortgage. All of this is well and good, but it does make the process more hectic on the REALTOR®. Go into a bidding war prepared to face the challenges that being a real estate agent can come with.
Ready your client for the best and the worst.
Communication is key—in life, and especially in real estate. With a bidding war on the horizon, you want to make sure your client is prepared for what could have 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 of what they see on reality shows, but don’t assume. Fill them in on the kind of offer they should make, how quick to go about things, and any other possibilities they need to know about to mentally prepare for a heated bidding war.
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 can also streamline the process by downloading apps like CamScanner, which gives you flexibility in scanning and sending in documents. Get a leg up on the competition with this efficient way of communicating with your clients.
This tense real estate experience 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 be the same for a bidding war that’s sure to hit home.