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Are Bidding Wars Good For Sellers Of Luxury Homes?

apartments in redlands ca

When your home is for sale, there’s nothing better than having multiple buyers expressing serious interest. You know one of them is going to come out on top, right?

While it seems like a bidding war would be a good thing for sellers of luxury homes in Redlands, CA — and it often can be — no sale is guaranteed until closing, which means multiple bidders can sometimes leave you empty-handed.

If you get lots of interest on your home, it’s best to protect yourself right off the bat from any potential setbacks due to competing bidders. Your real estate agent will be a tremendous asset during this period, but you can make sure you’re the one who comes out on top by taking these precautionary measures.

The Highest Price Does Not Equal The Best Deal

The benefit of a bidding war is that the numbers keep going up, but that doesn’t mean the highest price is the best offer. In fact, the highest bidders are often doing so because they are including other caveats, such as:

  • Contingencies
  • Clauses and language allowing for them to back out
  • No guarantee that funding can be lined up

Be Careful With Emotions

A relatively new step some buyers are adding to the process is sending homeowners letters about themselves and why they’d be a good fit for the home. In theory, this is a great way to single out who cares about buying your home and thus will be more likely to follow through with the deal. The problem is, if you’re already emotional about selling, you may be more susceptible to being swayed by a letter than you are about the right deal.

Stop While You’re Ahead

As bidders keep the price going up, you also have to know when to stop looking for more. If you get multiple bids on your home, you may request another round of offers. But if you come back again for a third round, you run the risk of buyers giving up and losing their interest altogether.

So What Makes A Good Deal?

While price will always be a factor in accepting an offer on your home, the other elements that can determine whether the deal is a good one include:

  • Bank preapproval letters/financing secured
  • Enthusiasm about the home and quick response to requests
  • Flexibility on contingencies and other clauses

 

 

About Us

Redlands California Homes for sale is run by Results Group. Jessica, Alan, and Justin have been part of this community since birth for some of them. If you are looking to sell a home, buy a home or just have questions about real estate in general in and around Redlands California such as Highland, San Bernardino, Yucaipa, Calimesa, Cherry Valley, Beaumont, Hinda, Moreno Valley, Bloomington or surrounding area, contact us at (909) 345-0909 or email us here. One call is all it will take for you to understand why we have top reviews and provide a zero pressure approach to real estate. Have an expert for all your Redlands California Homes for Sale and area for your real estate needs. Learn More About Us here.

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