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Steps to Take If Your House Ends Up in a Bidding War in Irvine, CA

What Should You Do If Your House Ends Up in a Bidding War

By , 9:00 am on

If you have a house for sale in Irvine, it is normally a good thing to have several people interested in buying your home. If multiple potential buyers desire the home, they may be willing to offer higher prices or other benefits to outbid competitors. Though this is good for you, being stuck in a bidding war can be a little overwhelming or confusing. Follow these steps to survive a bidding war on your home and get the most favorable closing deal possible.

Read Each Offer Carefully 

When you have offers pouring in, you may need to set aside some time to go over each one. Many contracts have contingencies that allow buyers to back out if the property does not appraise for a certain amount, if they cannot sell their current home, or if the home does not pass an inspection. Avoid selecting a contract without reading it carefully, or the sale may fall through once other potential buyers have lost interest. Because real estate contracts are so complicated, it is best to get an Irvine, CA, real estate agent involved in reading and explaining the offers.

Don’t Automatically Pick the Highest Offer

One big mistake many sellers make is just going for the highest offer. It might seem like the obvious solution in a bidding war, but keep in mind a real estate offer is much more than a price at the top of the page. Look at each offer carefully to weigh the pros and cons. Some buyers may offer things like shorter closing times or higher amounts of earnest money to make their offer more appealing.

Carefully Look at the Potential Buyers’ Financing

A big number might look tempting, but the buyer probably does not actually have all that money available. In most real estate transactions, the buyer will need to get the bank’s approval before selecting the house. Even if the buyer has a prequalification letter, a loan may still fall through if his or her circumstances change. Make sure to consider the feasibility of an offer because it may be wise to select a slightly smaller offer if the buyer’s finances are lined up already.

Know When to Stop Requesting Offers

Being at the center of a bidding war could backfire if you get too greedy. Repeatedly asking buyers to make newer and higher offers could end up frustrating them. Most buyers want to move into a new home sooner rather than later, so they are not willing to wait through a lengthy bidding war. It might be better to ask all potential buyers to provide their best and final offer after you go over their initial offers instead of trying to go through multiple rounds of bidding.

When listing houses, townhomes, or condos for sale in Irvine, CA, you’ll want to have a trusted local agent on your side. Call Irvine Residential Living today at 714-454-6304 to find out how we can help you sell your home.

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