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What to Do When Selling Your Home Results in a Bidding War

October 25, 2022
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Cobblestone streets, historic monuments, and ships, beaches dotted with seagrass and soft waves, granite mountains, and snow-capped peaks create the unique, luxurious city of Boston, Massachusetts. Filled with history, nature, and opulent new construction, Boston is one of the most competitive real estate markets in the country.  The city is famous for stunning, historic architecture mixed with luxurious new high-rise condos with sweeping views of the Boston Harbor. With an eclectic dining and shopping scene, Boston has some of the top restaurants in the world. Known for its incredible medical facilities, biotechnology research, universities, and top-rated public schools, Boston is an education epicenter and is filled with diversity, culture, and new ideas.
 
Beyond the city, Boston is a few hour's drive from many gorgeous sites in New England. To the south are the world-famous beaches of Cape Cod, and to the north are the scenic trails winding through the White Mountains of New Hampshire and the Green Mountains of Vermont, both also famous for their world-class ski resorts, such as Stowe Mountain Resort.
 
With so many amenities, Boston luxury real estate is highly competitive. According to Realtor.com, the median listing price for Boston homes was nearly $800,000, with homes ranging up to 30 million dollars as of June 2022. With such a high-end market, homes in Boston sell quickly and often for above the asking price. This can create a bidding war, which can be exciting for sellers, but it is also important to know how to manage it. If you’re selling in a highly competitive market, this guide will help you know how to manage a bidding war and get the best offer possible!

What is a bidding war?


What is a bidding war?
A bidding war occurs when two or more parties are interested in purchasing your property, and each creates increasingly higher offers to secure the listing. Typically in a bidding war, the offers will be increasingly favorable to the seller as the buyers are trying to create the most attractive offer to secure the property. Bidding wars can be exciting for sellers, and in the end, both the buyer and the seller prosper, with the seller getting a higher price than asking and the seller getting their dream property.

How to start a bidding war


As a seller, you might be wondering how to start a bidding war. The first step is to create a show-stopping listing for your home. This means hiring a professional stager to help clean, declutter and stage your home to create a picture-perfect image for buyers. Stagers will help select neutral, on-trend colors for paint, furniture, and art that complements the natural architecture of your home. Stagers know what buyers are looking for and can use this to showcase the luxury and opulence of your home. Stagers work with professional real estate photographers to capture beautiful photographs of your home for your listing.
 
How to start a bidding war
The first thing buyers see when looking for a new home is the photographs in the listing. Homes that have professional photographs are more likely to capture buyers’ attention, bring buyers in for showings, and tend to sell for more than homes that do not use professional photography.
 
Once your home is listed, one strategy to use to create a bidding war is to use deferred showings. In a deferred showing, you list your home but don’t start any showings until a few days later. This gives buyers time to see your listing and make appointments for a showing, creating times that multiple buyers will be able to see the home and hopefully make an offer to start a bidding war.

Handling multiple offers


Handling multiple offers
When you have multiple offers on your home, you’ll need to decide how to handle them. In one scenario, there might be one offer that stands out above all the others and meets your needs. In this case, there is a clear winner, and your decision will be easy. However, you might also want to return to some or all of your buyers and ask for the best and final offer. This puts pressure on buyers to come up with their best offer and lets you know the maximum value you can get for your property. There may also be offers that are just too low or have unacceptable terms. For these offers, you can decline and move forward only with the best offers on your property.

Choosing the best offer


Choosing the best offer
If you have multiple offers and aren’t sure which one to choose, there are some important factors to consider. The highest offer won’t always be the best, depending on your situation. Consider the type of payment being offered. As always, cash is king, and cash offers should take precedence, especially when the home is selling over the asking price. When a buyer offers cash, there is no need to be concerned with a home appraisal or mortgage approval, and this can be a huge advantage for the seller. Another factor to consider is if a buyer decides to waive a home inspection. Although not recommended for the buyer, if you have an older home, as is common in the Boston area, or you know there are repairs to be made, a waived home inspection can be a huge help for you as the seller.

Hire a realtor


The best tip for successfully managing a bidding war is to hire a realtor. Realtors are real estate professionals that are licensed through the National Realtors Association and are held to a higher standard of ethics. They will work tirelessly for you seven days a week to help create a stunning listing, find the right buyers for your property and navigate any bidding wars that come up.
 
When you’re ready to choose a realtor, there is none better in the Boston area than Ricardo Rodgriguez. Ricardo has extensive experience in the New England market and is known for his integrity, professionalism, and commitment to his clients. As an award-winning realtor, Ricardo has many luxury properties in the New England area and can help you buy or sell your Boston home.




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