Incite a Bidding War: How to Get Multiple Offers on a House in 2022
Housing is hot! Prices are soaring, and homes are selling quickly, creating tight competition. You can create a bidding war by attracting many offers if you’re selling a home.
How Do Bidding Wars Work?
Bidding wars are caused by high demand and a low supply of homes for sale in an area. The buyer’s agent gives the seller’s agent the offer. The home value estimator can accept an offer or ask for a higher one, with buyers trying to outbid each other.
In a bidding battle, purchasers can waive an appraisal contingency, adopt an escalation clause, or submit all-cash offers to make their offer stand out, driving the property’s final sales price over its assessed value. When the seller chooses the best offer, the selling agent informs the other purchasers, allowing them to look for a new home.
Here are ten ways sellers can use to launch a bidding war and get multiple offers.
1. Have a Good Agent and Know Your Market
To start a bidding battle, you’ll need the support of an experienced real estate agent who knows the current property market. Good realtors know the market and have the connections to attract serious buyers and several bids. Managing a bidding battle is complex, and a real estate agent can help stimulate buyer interest.
While you can’t control the market, a real estate agent can assist you in comprehending it. An agent’s community knowledge can guide price, marketing techniques, and listing timing. They can also adapt to changes in trends, pricing, or competition that could affect your pricing strategy.
2. Construct A Pricing Strategy
The fair price can trigger a bidding war in a competitive market. Too low a listing price risks undervaluing your home, but too expensive may discourage purchasers from bidding. To generate demand and several bids, price your home immediately to decrease market time. You can investigate comps in your region or have an agent collect comps from the MLS to determine a price range. Most sellers list their homes at fair market value or slightly below it to sell for more. Don’t undersell your home.
3. Schedule A Pre-Listing Inspection
Pre-listing house inspections attract serious buyers and give you a competitive advantage over other sellers. Buyers often include a house inspection as a contingency when filing an offer. By providing a pre-listing inspection report, you can be forthright about your home’s condition and avoid who-pays-for-what-repairs disputes.
4. Improve Your Home’s Curb Appeal
You need many bids if many purchasers love your home. Even if your interiors are exquisite, buyers may pass on your property if it lacks curb appeal. Increasing curb appeal includes:
– Changing the numerals of your home’s address
– Trimming entryway trees and shrubs
– Mow your yard before showings
– Light fixture replacement
– Painting your door
5. Staging Can Turn Your House into a “Must-Have”
Even in a seller’s market, a well-staged home can entice buyers to click on your listing photo and schedule a walkthrough. Staging seeks to attract buyers, and numerous people are interested. Hire a stager or house concierge to make your property enticing to buyers. Staging can help sell a well-maintained home.
6. Utilize Listing Photographs
Professional listing photos will help you sell your home. Professional listing photos help sell houses faster and for more money. Provide drone pictures to your listing approach to add value and stand out from other sellers. Aerial photos show homebuyers a 360-degree view from above. Homebuyers compare internet listings. You could lose clicks, showings, and offers if your photographs don’t grab their interest.
7. Create Demand before Listing
You can generate interest before listing your home. Before listing your home, you can attract purchasers. Premarketing will raise buyer interest in your listing. Serious homebuyers will have done their study and be ready to make an offer after seeing your home.
8. Add A Virtual Tour
Buyers may explore a home’s every nook and cranny with a 3D Walkthrough. Most buyers now browse for properties online, so a virtual walkthrough provides your listing an immediate advantage. 3D Walkthroughs help extend your buyer base by showcasing your listing in greater depth. Prepare your 3D Walkthrough like an open house to emphasize your home’s best characteristics.
9. Plan Your Showings Strategically
FOMO can be vital to your bidding war strategy and when arranging showing requests. Once your pricing attracts buyers, displaying requests should follow. Seeing other buyers enter and exit your home can encourage them to make an offer. This method can produce many offers since purchasers have a sense of urgency after seeing the competition.
10. Limit your Bids
How long you wait to sell your home depends on its kind and the local housing market. Setting a deadline shows buyers you’re serious about selling the house.
Even in a seller’s market, don’t launch a bidding war. Too high or too cheap prices can cause customers to walk away or submit lowball offers. Understand the local market, clean up your house, have a decent marketing plan, and establish a deadline for offers to build urgency. Bidding wars are the most excellent way to get the terms you want, and knowing how to start one may boost your chances of success.- by Matt Watts