With the real estate market so tight, bidding wars are very common. It’s important to understand these best practices:
- Know a home’s true value. It’s common these days to place a home’s initial asking price slightly below value. This will usually elicit multiple offers going higher and higher. However, some buyers will pull out if they assume the house is being overvalued.
- Don’t bid every last penny. As the bidding increases, the common tendency is to keep bidding and exhausting your resources. Most realtors advise holding back 10 to 40 percent of available funds in case the homes need repairs etc.
- Don’t assume you’ll get another bid. There’s nothing to say the bidding will go another round. Make your best offer.
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