Property Bidding Wars

If you've listed your property well, and it's in a desirable area in Ontario, you may find yourself in a situation where multiple offers come in on the property. In these instances, if you are careful, you can institute a bidding war. Some sellers fear a bidding war, because if you don't handle the bids carefully you could scare off your buyers. Yet when done well, bidding wars are excellent tools to drive up the price and help you get more money for your home. Instead of fearing the bidding war, learn how to use it well.

What Is a Bidding War?

A bidding war occurs when you have at least two complete bids in writing. If those bids are within the acceptable price range, are within your desired timing for close and are from qualified buyers, then you could turn them into a bidding war. Your goal in a bidding war is to push the price higher and get a signed contract from the "winning" buyer.

How to Generate a Bidding War

If you have more than one acceptable bids, make an announcement to your interested buyers. It should inform them of the high level of interest in the property, give them a deadline and ask for a "highest and best" offer. Also, make sure to tell the buyers when you will make a decision and disclose any inclusions, assessments and other factors that could affect their desired bid.

Once you've made this announcement, wait for the bids to come in. If the process works like it should, you will see the price go up. At the scheduled time, choose the offer that has the best price and terms and award them the sale of the house.

For most of us, our home is our biggest investment. When it's time to sell, get the value you deserve with the help of a professional real estate agent. If you'd like to discuss your next home sale today, please contact us anytime.