Bidding Wars... Remember Johnny Cash?
Thursday Jan 21st, 2021
We are still in a Seller’s market. Inventory is still low, and the competition remains fierce. This leads many to question multiple offers, and how do you win a bidding war?
Well, first of all, lets all not play stupid. Make sure that your home shopping budget and sense of comfort align with what you are seeing. And make sure your Agent is showing you homes that match that budget/comfort level. But does an MLS® home listed at a million mean that's the market value or close to market value or close to bidding war value? And just maybe the frenzy for under market "deals" begins. "Wow thats a great price for that home in that neighbourhood. Matter of fact, it's a steal" is something many are thinking (and most thinking they are the only ones that know its a steal).
There's a current listing in a very nice neighbourhood listed at $999,999, holding offers last night. Had eleven offers on it I'm told and did not sell. I was told that offers went into 1.3 plus but the owner said no to every offer. Wants closer to the 1.5 something mark. Yep, that is what I am told is the story behind the story. ELEVEN OFFERS. ALL BUYERS looking at a million dollar home.Though some have a budget 33% higher?
This is really a WTsixth letter of the alphabet scenario. I mean really.
If you as a Buyer have a budget in the 1 million range, what the heck are you doing playing in the range 33% above that? And as for the Seller, are you kidding me? Would you as a Buyer ever ever offer to pay 33% more for a property you wanted to buy? AND EVEN THAT WASN'T ENOUGH TO TICKLE YOUR FANCY!
Or was the Seller told some story about the "Bidding War Strategy"?
And were the Buyers really really educated on the "Bidding War Strategy".
So here's the real deal...The price has been bopping up and down 600K for over 100 days!
Looking at this information ( which I have access to as a Realtor®), I'd be inclined to think something's not quite right. Now as Home Sellers, we have the right to sell for what we want and for when we want to sell. As a Home Buyers, we can offer what we want to offer. But in my opinion, nobody wins and everyone should look in the mirror when stupid is stupid. This is just stupid. And a huge waste of time, especially now.
I'm all for getting my Sellers the most we can get with good strategic thinking and value proposition. But if you get 11 offers and none match your needs. Take it off the market. why you wasting time? The market has spoken. Or let it sit at the market price your Client wants. But don't try a strategy that makes no sense to anyone.
And Buyers...well, hopefully you know why you HIRED yur Realtor. And I do mean HIRED because that is what you do.
Buyers, here are some quick tips for Bidding Wars
1) Know your budget and budget comfort level.
2) Make sure you position yourself to "win" the bid on your value propositon ( Work with a Realtor® that knows what this means/entails)
3) Pre-emptively protect yourself or have your Realtor® protect your interests with inspections and warranties allowing you to make a less restrictive bid.
4) Know when to fold 'em and walk away.