The Truth About Multiple Offer Bidding Wars
Both buyers and sellers are caught in the middle of this crazy real estate market.
There are too few homes on the market to choose from.
This can create a lot of frustration for buyers wanting to “finally” find a home to buy. It can also be very hard for sellers because it’s not always as easy as picking the offer with the highest sales price.
There is nothing any of us can do about the current state of the market but in this article, I have a little insight that may help
Things seem pretty good if you’re a seller right now….however, in this crazy market, there is a downside to the frenzy created by “multiple offer” situations.
Now, more than ever, sellers must be extremely selective when accepting an offer.
Choosing the buyer that is most qualified, ready to buy and in love with the home, may be more important than simply picking the highest offer.
Buyers are getting burned-out from losing at bidding wars.
Many buyers are refusing to engage in multiple offer situations, either from losing out a few times or hearing from family and friends what a stressful experience it is.
Other buyers get desperate to win and make offers without taking time to really look at the home or process their offer.
Buyers just want to find something and stop playing the game.
They get rushed to make the “highest and best” offer before the deadline.
Buyer’s remorse can set in when they’ve had time to think about it. Maybe they offered too much? Maybe the home isn’t what they really want?
Sometimes the contingency of the “inspection period” is used to terminate the sale, request a price reduction or make excessive demands.
This action does not necessarily work, so be careful and be well educated before assuming anything, especially as the buyer.
If your agent encourages you to use this strategy, get another agent.
The appraisal is also another opportunity for a buyer to terminate a sale if a lender is involved.
The appraisal is a “safety net” for the buyer that has offered more than the home is worth based on the official appraisal.
This can cause price reductions and terminations, which are common in a market like this.
Bottom line – Underpricing a home to deliberately create a bidding war needs a lot of consideration and education for both the buyer and the seller.
It’s best to price your home competitively, get a solid buyer that loves your home and enjoy a smooth transaction.
PLUS: Whenever you’re ready…Here are 4 ways we can help you now….
#1) Get a “Market Activity Report” for your specific area….
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#2) Go here to get a “Home Value Report” and find out what YOUR home may sell for.
#3) Get a free “Home Evaluation”
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#4) Click here for an easy way to check out your home loan options
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On your team,
Shirley Nilsen – Broker/Owner
Sunrise Realty Group
Serving Clackamas County
Buyers and Sellers for over 20 years
Licensed in the State of Oregon