HOW NOT TO BE IN A BIDDING WAR

Many buyers are afraid they will get caught up in a bidding war. Bidding wars in our area are uncommon, but not unheard of. The best way to ensure you do not get caught up in a bidding war is to have your real estate agent prepare a detailed comparable market analysis with a spreadsheet (be sure there is a spreadsheet - a sample is HERE) that shows you how the agent arrived at the home's value. You need to decide if you are willing to pay that price or if you are willing to pay a small premium over that price. Once you have arrived at that number, it is important that you do not exceed it. Do not get caught up in the emotional component of trying to win the bid on a house at any price.

It is common that sellers will simply collect offers on the offer day and select the offer that has a combination of the best price along with the best terms. In our market, it is not particularly common to see sellers provide buyers with a counter offer. This is why we encourage buyers to put their best foot forward with their first offer, as there is unlikely to be an opportunity to adjust the price or terms later.

Often buyers mistakenly think that once they submit an offer, the seller will provide a counter offer, and the buyer will offer another number, which will cause the seller to offer yet another number. This is very uncommon. As stated earlier, sellers will usually select among the offers they have received, and will never issue a counter offer to anyone.

Again, based on the comparable market analysis that your agent provides you, you can decide what the maximum price you will offer on the property will be.