A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
What
should you do if the home you want ends up in a bidding war?
In a one word answer, RUN, run and
don’t look back. Unless you have an unlimited supply of money, a bidding war
will make you end up going over your budget and probably make you purchase a
home that is overpriced.
Many sellers price a home low to try and get a bidding
war started and once the bidding gets started, emotion gets in the way of good judgment.
In this type of market, it is
common to run into homes that have multiple offers and as frustrating as it may
be, all you should do is put together the best package you can and offer what
you think the home is worth and what you are comfortable paying. Let your
Realtor present the offer in person (which is not done too often anymore) this
way they can sell your package and sell the reason it should be accepted.
If
you lose and the owner takes a better offer, then move on but make sure you put
a time limit on the offer. You don’t want your offer to be used to get others
to bring better offers, so let the sellers know that you are not waiting
around. Make your offer, give the sellers 24 hours to decide and if they don’t,
move on.
I understand in markets like we
have now where there are very few listings out there, it is easy to get caught
up in a frenzy to buy, but be patient and let others fight it out.
Smart
sellers understand that it may not be the highest offer that makes it through
the process, so if you put together a strong package, then even though you are
offering a lower price but it looks like you are more likely to survive the
escrow process, then you still may win in the end.
A few things you can do to stand
out when it comes to making an offer.
First shorten the contingency
time. Get the home inspection and appraisal done in the 1st week.
Have your lender get the loan approved in 10 days so you can remove the loan
contingency. Don’t ask for any repairs on the property. The most important is
close the escrow as soon as possible. If you make these promises to the seller
then you may be able to get them to go with you, rather than a higher priced
offer
important, make sure you have
your loan in place and ready to go, and make sure your lender is willing to
talk to the seller and assure them the loan is good to go. Try to get as many
road blocks removed as soon as possible to sway the seller your way.
Make you best offer but do not get
into a bidding war, if you do, more times than not, you will regret it.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.