Q. What Do I Do If I Get In A Bidding War?

A.

One of the unfortunate side effects of a HOT! real estate market are the resultant “bidding wars”. With quality properties in short supply the results of such a property hitting the market are that often times several people and more are interested in the same property. The agent for the seller informs interested parties that several offers have been made and encourages all interested parties to make an additional “best price” offer.

Sometimes even after a best bidder offer has been verbally accepted a third party offering a still higher price will enter the fray and steal the prize. Remember, if you don’t have it in writing; signed sealed, and delivered, all you have is conversation!

The bidding wars of late have created a lot of anxiety for a lot of buyers. The stress and strain of financial conflict has resulted in a number of buyers having to seek counseling on the therapist’s couch! These stressed out buyer’s feel like they have been “jerked around” by their Realtor; the seller’s Realtor, and everyone else who has played a part in their unhappy transaction. Often times the loss of a property a buyer has set their mind on isn’t a single incident. Maybe this has happened two and three or more time. No wonder they feel like they are going nuts.

The purchase of a home is stressful enough. Often a buyer looks at a home they believe is available and within their means and mentally they begin to “let go” and shift their focus from where they have been living to where they will be living…they think. Then when they loose the new home of their dreams in a bidding war, they see their life “hitting the fan”and they sometimes become undone!

However, it doesn’t have to be that way. As a Realtor, I always caution my buyers as to the realities of buying a primo property in a hot market. I let them know that they may not end up with the prize. I always call the seller’s agent to find out if they are working another contract or if they are expecting to receive one soon.  If that’s the case and they want the house, I have them make their final and best offer up front. If we’re lucky, we’ll get the house. If we don’t it will be through no fault of our own, because we gave it our best shot!

Listen, even if a buyer looses several bidding wars, they eventually find a place. And you know what, invariably they end up liking it better than the places they lost. I always remind my buyers that as important as a house is, it’s just a home; it’s not your health. I tell them that we’ll go out and find something else and we always do!