How to handle a bidding war

Dated: April 30 2021

Views: 158

A bidding war occurs when a home seller gets multiple offers. Since bidding wars are fairly common these days, it pays to plan ahead. You'll reduce surprises and stress, and be better prepared to negotiate.

For instance, I tell both my buyers and sellers to think about how sellers can respond to multiple offers. Sellers have four options:

  1. Counter all offers by asking for a “best and final” offer. Then choose the best.
  2. Accept one of the offers outright.
  3. Pick a few offers to negotiate individually.
  4. Reject all offers and wait for new ones. (It happens, though rarely.)

Other details that can affect the offer:

  • Sellers realize that the highest offer isn't always the best offer. Terms can also make a big difference.
  • Sellers know the appraisal could be a problem. Just because they accept a huge offer, doesn't mean the appraiser will agree. Sellers may ask for funds to make up the difference.
  • Buyers can consider adding an escalation clause to their offer, which says they will automatically increase their offer by some amount over and above the highest bidder, up to a certain cap.

I help my clients prepare for these and other scenarios during our pre-buying or pre-selling appointment. Contact me at (909) 316-6117 or to set up your no-obligation initial consultation. 

Blog author image

Roger Flowers

My name is Roger Flowers, and I am a REALTOR based in Southern California. I have a particular focus on the residential market, more specifically, assisting clients throughout the Inland Empire and Sa....

Latest Blog Posts

The Most Common Types of Mortgages

One of the more complicated aspects of buying a home is understanding the different mortgages available and deciding which is right for you. Knowing the basic facts about the most common types of

Read More

What's New in Floor Plan Design?

Interior design styles come and go, but when it comes to floor plans, homeowners prefer designs that meet their needs and endure the test of time. Over the past 18 months, the cultural shift to

Read More

Understanding the Current Housing Shortage

As the 2021 real estate boom continues with bidding wars and record-selling prices, it's common to wonder how we got to this point. The pandemic and lockdown forced us to accept personal changes

Read More

Top 5 Home Improvements

Looking into home renovations? Here are the five improvements that will reward you the greatest ROI, according to an eye-catching feature, garage door replacements 

Read More