There are many factors that go into winning a bidding war. Primarily its the money on the table but in some cases your agent or you might be losing before you even go into the presentation. Here are few factors to consider. It’s not always the money talking for some owners. Owners who have lived in a house for a long time want to make sure they are selling their house to somebody that will do right by them and their property. It gets very emotional. Another factor to consider is that being in the power position, they probably will not want to be put in a smaller state. This is something that many agents and people go into a presentation not taking into account. Listed below are a few factors that can make you lose a bidding war before you even go in.
1. Not enough money going in: If you know the area sells for a certain amount and you under bid, this will probably insult the people selling. Go in at asking price at least.
2. Conditions: If your agent knows the area well then they will understand that you must go in with little or no conditions. Its unfortunate but that is what it will take to win. This could supercede money sometimes. They would probably take a bit less money to have the deal closed then and there.
3. Attitude: If there are ten more bids, you’re just another notch, don’t go in with the attitude that your shit don’t stink! If they don’t like the agent, they’ll just move on. Be humble and not arrogant! No Games. I once had a client tell me to go in and offer an amount that was good for only that 5 minutes. Turns out we were lower than the rest and I looked like an idiot.
4. Have some sort of rapport with the selling agent at least. Go to the open house with your agent and talk to the selling agent a bit. So they know who you are, and can get a bit of a soft spot for you. I know this sounds crazy but, at the very least, if you and your agent have this, then when you are bidding they can give you some hints as to how much higher to bid without going too high. This is not a science but a feeling when agents are speaking.
5. Always present in person and be there. You should always (if serious) have your agent present, and you be there in person. Why? So they know you are serious, and when you need to up the price, it can be done. If you or your agent are not there, then like in #4 you cannot get those subtle hints as to how things are working out and how to take control of the situation and your bids. The only way I would say don’t go is if you are just throwing a bid in the pool and not going higher. There is no reason to be there in that case.
Finally the best thing to do is be patient. Going into bidding is not for the faint of heart for the agent or the buyer. It is tough out there and you could be bidding for months and a lot of time is spent. You must understand that you are just one of thousands that are looking for a house.