Home Owner or House Hunter Heckled in a Bidding War? How Will You Handle the Heat?

Bidding wars, controversial as they may be, are an inevitable reality in today's real estate market. Despite the antagonistic claims that posit these ventures as hazardous, undermining and unethical, the bidding war mentality is the mentality in real estate today. Essentially, this is a marketing strategy that is well, driven, by the market. For the unaware buyer, what it refers to is a situation in which a property on the market attracts many offers from potential buyers. Despite a cooling off or a deceleration in sales’ numbers, real estate in popular, desirable neighbourhoods at least, continues to be dominated by the bidding war strategy.

Real estate today, is far from the age old fairy-tale it once was. Before the skyrocketing of this new strategy to marketing properties, sellers would price their home, evaluate potential offers as they came, and alongside an agent, decide which offer was the best offer to work with. In today's seller's market however, this has been replaced by a mentality that we will call, the bidding war mentality.

Either side of the coin requires a play of the dice; winning a bidding war, or selling successfully depends on the numbers you roll, or in relevant terminology, on the real estate agent you hire. In real estate, the right agent can really be your right hand! So whether you are buying or whether you are selling, do with an open mind, consider hiring an agent to help you.

Why may an agent be the way to go? In an either or scenario, an agent may be determinant of the difference between private selling versus professionalism. In basic, real estate agents are better aware of the tricks of the trade; tricks that an inexperienced seller may not. Transpiring skills that involve everything from properly pricing a home, staging the home and negotiating deals, the right agent can help you make the right choice!

Bidding wars, generally gas selling prices higher than their listing; a tactic obviously put into play by the professionals, more often than the private seller. An agent can tell you the value of neighbouring homes and what homes in the community sold for recently, so if you choose to, you can make a concise, calculated bid. With a real estate agent, you allow yourself access to more information, as they, more so than the average person, have at their fingertips, search tools and websites only accessed by themselves. It cannot be denied that selling privately is "cost-friendly" in the sense that one is not paying real estate commission. On another hand, hiring the right agent may get you more for your money... they will help you market and sell your property at the best possible value which may in the end make the “cost” of commissions worthwhile.

At the end of the day, whether you are a home owner or a house hunter, the decision is yours. When deciding whether to use the services of an agent or get it all done yourself, consider most importantly, what is your net price and how can you achieve it.  

Carol Ghannoum

Carol Ghannoum

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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