You may have seen me deal with multiple offers on Million Dollar Listing LA, walking out of a dinner, standing on the sidewalk and shouting into my cell phone while I have the other agent on hold. For me and every real estate agent I know, bidding wars are a rush, a high. I live for them. You should, too. Learn ’em. Lure ’em. Love ’em. Leverage the hell out of ’em and close.
Now I’m going to break down multiples and bidding wars from the seller’s point of view. Buyers should just flip the advice and, in a seller’s market, they will have new insight into how to hit a seller’s hot buttons, get ’em squirming, and win the house.
Getting new bids almost always involves more cash, less time, and some crazy terms. The highest bid, preferably all cash, with the shortest closing schedule is usually the winning offer. Usually. For the buyer, however, leverage lies in the contingencies. If the house doesn’t pass an inspection, say, the leaky roof is deducted from the price – that is, if you still want the house. If the appraisal deems the house is worth lower than its list price, that’s more leverage to lower the offer. If the buyers need financing, the lenders won’t approve it for an overvalued house. The process of selling real estate – more open, work, close – has built-in trip wires so buyers and their lenders don’t buy defective houses unaware. Be aware of this or these landmines will blow up in your face
For buyers, counteroffers mean you are ...