A process in which two or more parties attempt to get their offer accepted by a seller, usually by making repeated offers at higher amounts.
More On Bidding War
A bidding war is a process in which two or more parties attempt to get their offer accepted by a seller, usually by making repeated offers at higher amounts.
Bidding wars are sometimes purposely sparked when sellers set an asking price that’s below market value. The idea is to play all the interested buyers against each other, hoping that the frenzy created will bring an above-market price. Sellers may also try to create bidding wars to speed the selling process up and not have to deal with it for an extended period of time.
Regardless of the seller’s reason for sparking it, the strategy for dealing with a bidding war is the same.
- Make an offer that’s as clean as possible
- Be pre-approved (not just pre-qualified) for a mortgage
- Put up a substantial earnest money deposit
- Be flexible about closing dates
- Know the property’s value and set a limit before bidding