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:
- 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.
- 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.
- 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.
- 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.
- 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.