With low inventory the last few months, we are seeing buyers entering into multiple offer scenarios. One tactic to win the bid is using a "Sharp Bid". What you are doing as a buyer's agent, is basically putting in an escalation clause in a purchase offer contract to increase the purchase price if other bids exist that are higher than yours. For example, the offer states "Offer to be $1000 dollars more than the highest offer received, not to exceed a purchase price of $250,000". So if buyer A offers 230k and buyer B offers 235k, your buyer will get the property for 236k.
The way to curtail fraud on this type of strategy is to request to see all other offers upon acceptance of your offer.
So my questions to you are:
1. As a listing agent, how would you handle an offer like that?
2. As a buyer's agent, what have your experiences been with this type of offer?
3. As agents, what are your thoughts on "Sharp Bidding"?
4. Would you use "Sharp Bidding"? Why or Why not?
Another no-thrill blog to educate and discuss with agents and the general public on how to win a multiple offer scenario while protecting the buyers from over-bidding.
Comments(4)