How to Start a Bidding War

Homes are selling for record prices and in record time. If you’re a seller in today’s market, you’ll likely want to attract as many offers as possible, and even start a bidding war, to bring you the best price for your home. A bidding war is when several eager buyers submit higher and higher offers, cutting contingencies to hopefully outbid the others. Though there’s no guarantee they’ll be a bidding war for your place, here are 10 tips to get your sale in a multiple offer situation:

Hire a Great Agent

A great real estate agent will know the ins and outs, and the nuances, of your market. Managing a bidding war can be a delicate process, and a good agent will be able to adequately negotiate on your behalf and get you the best price (and terms) in a multiple offer situation.

Price Correctly

Price too low, and you risk undervaluing your house. Price too high, and you’ll end the bidding war before it even starts. The best strategy, and the one most likely to garner multiple offers, is to price slightly below market value. This will entice as many buyers as possible to make offers, leading to a potential bidding war.

Pre-Listing Inspection

Perhaps you’ll consider paying for an inspection report before listing your home. While not very common, having a recent inspection report on hand can give you an advantage over other sellers in your market. Having an inspection report on hand shows transparency to buyers, and may even cause them to waive further inspections altogether.

Enhance Curb Appeal

Buyers need to fall in love with your home before bidding on it. Consider taking on a few weekend projects, such as trimming shrubbery, mowing the lawn, updating light fixtures, and painting your front door. All of these will help boost your curb appeal and aren’t incredibly labor-intensive (or expensive).

Stage the Interior

Now that you’ve got the exterior up to par, it’s time to get the interior set up for showings. With most home searches starting online, a well-staged home can be the difference in a buyer scheduling a showing, or clicking on the next home down the road.

Professional Photos are Crucial

As mentioned above, most home searches begin online nowadays. In addition to staging your home, consider hiring a professional photographer to take your listing photos. If you’re working with an agent, they’ll likely have connections, and may even cover this cost for you.

Premarketing

While subject to local laws and agency regulations, you may be able to market your home to buyers before it gets listed. By getting the ball rolling ahead of time, you can drum up interest among buyers, giving you the best shot at a bidding war.??

Virtual Walkthroughs

Though still a fairly new technology and perhaps not necessary, a virtual (or 3D) tour of your home can be the perfect tool to expand your buyer pool. Buyers can tour every corner of your house without having to leave their couch. Having a virtual tour gives your listing an added convenience and increased exposure.

Strategic Showings

Request that your agent schedules as many showings back-to-back as possible. When buyers see a line of cars outside of your house, they’ll know there’s serious interest, and they’ll feel compelled to act quickly if they like the place. A sense of urgency will do wonders for attracting multiple offers.

Set an Offer Deadline

After multiple buyers have seen the place, back-to-back, of course, make sure to set a deadline for offers. Setting a deadline for offers will ensure that only serious buyers are making offers. Your agent can instruct other agents to bring their “best and final” offers to the table.??

Article Source:?Redfin