Buyers Were Asking: How to Approach a Bidding War, Part 1

How to Approach a Bidding War, Part 1

Once a rarity, the idea of a ‘bidding war’ has become somewhat of the ‘new normal’ in this highly competitive market.  As a Buyer, whether it is your first offer or your fourth, finding yourself competing against one or more offers can be stressful, challenging and it often takes a few tries to really understand not only what is going on or how to come out of it successfully.  

Although unpredictable, there are a few things you can not do to prepare yourself should you find yourself in a competitive offer situation.  

First off, let’s start with understanding what happens during competitive offers:

  1. Once signed, your offer is registered with the Listing Brokerage and a presentation time is then set.  You’ll often note the days offers are being withheld until a certain date, per the Seller’s request in order to allow for as many potential Buyers a chance to submit an offer.
  2. If you wish to submit an offer you can do so at any time but just note, offers will only be presented at the designated date / time.
  3. If you have an offer in the ring, your REALTOR will communicate just how many offers you will be competing against at the time of presentation.
  4. During the presentation, all offers will be presented in order of their registration… first offer registered… first offer presented…and so on.  After a brief discussion, one offer is selected while the others are subsequently rejected.  No negotiations. 
  5. All parties are notified if their offer was rejected or accepted and details of that offer are not revealed until a firm sale is made. 
Want to help ensure yours is the offer selected?  Stay tuned on the blog for more on the Bidding Wars we’re seeing time and time again in this market!

As questions arise, as they often do, please feel free to reach out!