What actually happens in a bidding war on a house?

Описание: If you are buying a home in a tough market, there are some important things to note. First off, what even is a bidding war? Well, it’s when there is a beautiful home, that more than one person or family wants to buy. In the end, the seller will receive multiple offers to buy their property. So, who gets the final sale?

Let’s talk about what actually happens in a bidding war.

For starters, bidding wars come with a few rules, just like any competition.
Realtors must disclose the number of offers to anyone who has made an official one
Who is representing who in the sale
If any of the real estate agents are changing their commissions
Any time there are any changes in the offers, real estate agents have to disclose them

So, as a buyer, make sure you have a real estate agent or professional who is aware of these rules and is keeping you informed throughout the process.

Now that you know the rules, here is how a bidding war works:
Buyers must put in a written offer. From there, they’ll be aware of all additional offers.
When the second offer gets registered, the first offerer will be informed that it is now a multiple offer situation
Once all offers have been registered, the seller will begin to review them
If another offer is submitted after the review process has began, all of the original offers will have a chance to resubmit and change their original offer

An offer typically includes the following details:
801 received (yes/no)
Offer presentation time (usually scheduled 10-15 minutes apart)
Agent name and contact info
Offer Price
Deposit Amount
Irrevocable Time
Closing Date
Conditions
Cheque Herewith (yes/no)
Notes

The seller is always in charge, so they can choose to accept the highest or best offer, ask buyers to improve their offers or choose to enter negotiation with one of the buyers

If a seller asks you to improve your offer, you can choose to walk away or enter the negotiation process

Once an offer is accepted, the losing offers will be informed that the property has sold.

Whether you win or lose in a bidding war, having the right experts on your side is crucial. Real estate agents can help advise you on the best course of action through a multiple offer situation and guide you when you need them to.

If you’re currently looking for your dream home, head to Zolo.ca or download our app to check out what’s on the market in your area. For more information on the ins and outs of buying, selling and all things homeownership, head to Zolo.ca/blog for tons of great content. Thanks for watching, subscribing and liking this video, and we’ll see you next time!

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