It is becoming more common for home sellers to list their home for a low price, hoping it will entice people to get into a bidding war. When a bidding war occurs, the parties who have put in an offer are asked to come back with their best and final offers. This often results in the final sale price being higher than the original asking price for the home. However, as a buyer, you may wish to avoid getting into bidding wars. Some buyers want to know right away if their offer was accepted or rejected, and some simply don't like feeling like they are playing a game when it comes to bidding wars. If you are looking to buy real estate, but don't want to get into a bidding war, here are a few tips to keep in mind.
Submit a Best and Final Offer from the Get-Go
One way to avoid getting involved in a bidding war is to submit your best and final offer right from the get-go. You offer what you are willing to pay for the home and let the seller's real estate agent know this is the only offer. The seller can then either accept or decline it. But either way, it lets them know you are not going to counter or engage in any negotiations. If they have other offers and feel they can get a better offer elsewhere, they will decline your offer and you will know. If they feel your offer is fair or that they can't do better, they will accept it.
Ask the Seller's Realtor if There Are Offers
Another way to avoid getting into a bidding war when buying real estate is to simply ask the realtor selling the property if there are any offers. The Realtor standards of practice and ethics guidelines state that real estate agents should disclose whether there are offers on the table, unless confidentiality is required by law. And if the sellers agree to it, the realtor can also give details of the other offers, including the price of the highest offer or the conditions of the best offer. If you realize that there are multiple offers, or that the offers are higher than what you are willing to pay, you can walk away from the property before even putting in an offer.
If you dislike negotiating, you may not want to engage in a bidding war when buying a home. Asking the sellers real estate agent if there are other offers and presenting your best and final offer right from the get-go can help you avoid a bidding war. Also, consider the old adage that if something seems to good to be true, it may be. If a home is priced significantly lower than market value, it may be priced that way in hopes of starting a bidding war among buyers.Share