How to help your client win a bidding war
Despite the pandemic, bidding wars are still a common occurrence in the real estate market—especially for detached homes and suburban properties. For first-time homebuyers or those that have not been in the market for a long time, bidding wars can be an intimidating, stressful experience. But you can help see your clients through the process—and win—with a few helpful steps and words of guidance.
Based on your clients wants and needs, if you anticipate that they’ll be interested in properties likely to attract bidding wars, the best thing you can do for them is set that expectation with them. Perhaps when you send over a listing, you could mention that you expect it to attract a lot of interest. Or alternatively, when your clients request a viewing, you can also mention to your client that the sellers have set an offer date and are expecting multiple offers, so they don’t become surprised once it happens and are prepared to submit a more competitive offer.
Send a ‘Dear Seller’ letter
Some sentimental sellers could be emotionally attached to the property they’re selling and care about their home going to a good buyer. Even if someone offers them more, they could end up choosing a wholesome family and accepting less money instead of an investor that intends to raze their home to the ground after buying it. A good Dear Seller letter will tell a bit about the buyers, why the home is perfect for them and how they imagine their family living in it. Not all properties and sellers are equally influenced by Dear Seller letters. For example, condo sellers might not be as attached to their properties compared to longtime homeowners.
Let your client lose
This may sound like tough love, but putting your clients through the experience of losing out on a bidding war can be a beneficial experience for them if they insist on submitting an offer at the listing price. They’ll get their feet wet in the experience and will realize how much over the list price that properties are able to garner. Experiencing a loss can help them act more competitively in future bidding wars.