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I think that most sellers dream of a multiple bidding situation as it just confirms their personal belief that their home is perfect, and should warrant the attention of so many buyers vying to buy it... However, when should we have multiple bids? Should bidding in certain situations be handled on a bid by bid situation..?
In Westchester, we can usually bring up the subject of multiple bids when there are 3 bids (in writing) on the table. Some agents jump the gun, and when they are informed by agents that bids will be forthcoming- and then they do not materialize.. then those agents are left with egg on their faces - and potentially lower bids thereafter.... As I explain to my clients, it is always best to wait until you have those bids in writing with proof of funds before you start suggesting a highest and best situation.
I recently experienced this situation with a client who upon hearing of interest from several agents, thought we should implement the highest and best scenario. If you ask for highest and best, and then don't receive those bids, we all look foolish. As it happened in this particular case.. only one bid materialized. It is hard for some sellers to understand why caution is important.
I realize that when buyers do not like homes it is as if - to a seller - they are insulting their child, but buying a home involves personal needs, both financial, logistical, number of bedrooms, stairs, floor plans, backyards, storage space ,etc. So many finite details that even when a buyer places a bid, they might then consider the negative factors compared to the positive factors for them, and while they can afford more, might see the house worth X amount less than list price - if even just to negotiate as low as they can - simply because in this market - they can.... It is all business.
If a seller would like a highest and best situation then pricing of course is most important. Pricing a home very competitively so the buyers see the value of the home both in price and what it offers compared to similarly priced homes. The market will always tell you where you stand. If priced well - there is the potential for multiple bids. if priced too high... you could still have multiple bids if the home is simply glorious but those bids might not be higher than list price... I received 10 bids on one property, and 5 bids were under asking, and 5 bids were at asking or over... SO, you never know...
Sometimes, when I receive 2- 3 bids or so.. I might suggest to my clients to look at each bid independently of each other. For instance, if they ask for the highest and best, then they are locked into the bid they choose ( if honorable) - with the other bids being back-ups until the first bidder is not performing..... However, if they look at the merits of each bid -without having a highest and best, negotiating with each agent/buyer on an individual basis, then they are not closing the door to other offers, and then they can always accept a better bid should one come along and/or the other agent(s) improves his bid accordingly. ALso, you do not just want the highest bid, you always want the BEST bid - in terms,etc. Unless you have no contingencies, you are still waiting on the appraisal too.. I have obtained an accepted offer with having a lower bid than the other 6 agents BUT I took the time to ask when the sellers wanted to close, and by offering a later close date, obtained the accepted offer..
Selling a home can be exciting and it can be traumatic. Having a seasoned real estate professional in your corner can help the process.
Larchmont and New Rochelle are GREAT!
Gay E. Rosen, ABR, CBR, CRS, GRI, SRES, CDPE, REOS Licensed Real Estate Associate Broker Houlihan Lawrence 2070 Boston Post Road Larchmont, New York 10538 (914) 833-0420 Ext. 307 (914) 907-2645 Cell
2012, 2011 & 2010 Platinum Award Recipient 2012, 2011 & 2010 Top Agent Award in Customer Satisfaction
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.