How to Win a Bidding War Part I

Real Estate Agent with First National Realty

Although multiple offer situations are almost non existent in most markets, here in Memphis we do occasionally see a property, usually an REO, that is priced well below the current market that attracts several buyers at once. One of the worst things that can happen during the home buying process is to finally find your dream home, only to discover that someone else is already bidding on it. When this happens, how can you win your dream house without losing your shirt in the process? In this article, weíll cover some of the more important points to winning a multiple offer property in Memphis TN real estate market.

Tip #1 - Know Your Limit

It's tempting to increase your bid based on emotions during a bid war. Buyers are often willing to pay more out of competitiveness, feeling that something they want is being taken away, or just plain rationalization.

This trap can cost you thousands of dollars. Instead, do your comparative analysis of the properties nearby, choose the highest number you're willing to pay for this property and stick to it.

Tip #2 - Have a Real Estate Agent That is Looking Out for You

Remember that real estate agents are paid based on the selling price. There are agents that will look out for you and have your best interest in mind, while other agents would rather increase their commissions by convincing you to place a higher bid.

It's important to have a real estate agent you can really trust during the process.

This information has been brought to you by Olena Keene, First National Realty tel. (901) 277-5324

Comments (1)

Antoinette Scognamiglio, GRI, ASP
Coldwell Banker Realty - Mountain Lakes, NJ
There's no substitute for EXPERIENCE!

An agent truly has to be hard up to press a customer into paying more than they can afford. You MIGHT make the sale (what if they don't qualify) but you'll certainly not get the referrals you could by getting them a great deal instead. Considering thousands of dollars in purchase price only equals a couple of hundred more in commissions, an agent would be very foolish and short-minded to take that route!

Feb 03, 2010 12:03 AM