Bidding Wars - What can you do?

Robert Kohrs, "GardenStateRealtyGrp"
- (7 reviews)
Contributions:206

When multiple offers are placed on a listing at the same time, it is important to be fair and honest. "Bidding Wars" leave buyers with a bad taste in their mouth. While not everyone will leave the process happy, agents should maintain an orderly bidding process. 3 Ways to Handle Multiple offers: 1) "Best and Highest": after 2 or more bids have been received, a seller may elect to go to a final round of bidding called "Best and Highest". This protocol calls for setting a short deadline for all bidders to submit their best & final offer. If new bidders enter the process before the deadline, they will be invited to submit a final bid. It is customary to accept one of the remaining bids after the deadline has passed after which all other bids will be held as back-up offers.2) Independent Counter Offers: a seller may choose to engage in price negotiations with multiple bidders simultaneously without each bidder privy to what is happening with the other bidder. In this scenario, the seller could make offers and counter offers with several bidders privately. If a buyer's agent asks if there are other offers on the table, the listing agent must disclose the number of other offers and if any are in-house offers (provided seller permits this). He does not need to disclose how the seller is handling the other offers if the seller forbids it.

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August 09 2009 - Hoboken

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Replies (6)

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Contributions:4311

What should you do?

Learn poker ! Call it a bluff or move on...

Do you think it was just easy money and loose lending that lead to people taking risky loan terms? The banks only poured money after all the mania and scamming by REA started.

More so called bids more commissions to the REA... bad deal for buyers.

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August 10 2009

klarek the realist
Contributions:7044

What should you do? Wait for the market to cool down. They are squeezing the inventory tightly and pushing buyers off the fence with the $8k buyers bribe. Who wants to pay more than they should because of a manipulated market? The game is rigged, stay out.

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August 10 2009

sunnyview
Contributions:26843

Unfortunately, I believe that some agents where the pressure is the greatest to claim the $8000 credit manufacture "multiple bids" to drive the price higher. There is no oversight in this process of accepting bids. The honesty of it depends solely on the ethics of the individual agent involved. Buyers need to remember that these shadow bids do not change the value of the house that they are buying. Do not overbid in an effort to win. You need to keep a cool head and be willing to move on if your first offer was already your best and highest for that property.

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August 10 2009

BMFPitt
Contributions:1207

Always decide what your maximum is before making an offer, and don't ever go over it. Whether you are the only bidder or one of 100 should have absolutely no bearing on what your maximum is.