How to Manage Real Estate Bidding Wars?

The phenomenon of real estate bidding wars is becoming increasingly prevalent in today's market. Many properties are being sold at significantly higher prices than initially listed, as sellers seek to take advantage of this favorable situation. However, we advise you to remain cautious in these circumstances. Recent situations have shown the effects that real estate bidding wars can provoke. In two cases, sellers had very realistic expectations regarding the sale price of their homes. However, during negotiations, we managed to exceed the initial price by over $100,000. While this success undoubtedly pleased them, it also made them more "greedy," believing they could have obtained an even higher amount. The key, though, is to set the right price from the start. Consumers won't rush to buy properties that don't match the indicated value. So, how can you proceed to establish the right price?

Analyze Comparable Properties on the Market

The most crucial step is to examine recently sold comparable properties and, most importantly, to assess your competition. Studying properties currently for sale will give you a precise idea of the price you can set. However, be cautious not to make simplified comparisons. Just because one house sold for $500,000 doesn't mean yours will sell for the same price. A well-thought-out strategy underlies every property sale, and this can be discussed with your qualified real estate broker. In summary, base your decision on actual listing prices to achieve the best possible results.

Optimally Prepare the Property

To attract potential buyers, you must create captivating photos of each room in your property, whether through virtual home staging or actual shots. Pay particular attention to the kitchen and bathroom, as they are two essential rooms to showcase. You'll quickly see that excellent visual marketing will aid you in your real estate selling project.

Understanding Real Estate Bidding Wars

Discussing the current context of bidding wars with your real estate broker will give you insight into this phenomenon and its process. Bidding wars primarily occur during the negotiation stage. When your broker receives the first offer, they inform all collaborating brokers involved in the sales process. However, these brokers won't know the identity of the potential buyer or the price offered, as the offers are closed. A precise schedule for property visits and submitting offers will be established so that everyone is aware of the rules regarding the sale of your property. Your broker will then carefully select the offers to present to you. At this point, you will witness the extent of the bidding war. Rest assured that your real estate broker will follow all procedures in place to respect the buyers and collaborating brokers involved in these offers. Are you nervous about setting the right price for your property? A clause in your brokerage contract, which can be declared null and void, provides the right to refuse any offer presented for your property. To successfully establish the price of your property, we recommend analyzing comparable properties in the market, implementing appropriate visual marketing, and gaining a comprehensive understanding of bidding wars. This way, you'll be able to sell your house under the best possible conditions. We remain at your disposal to assist you with your real estate selling project! Don't hesitate to contact us!