Halstead Property

Jill Sloane
Exec. Vice President
Westside Office
Tel: (212) 381-2206
jsloane@halstead.com

Preparedness Key For Winning A Bidding War Expert Says

By: Jill Urban

With low inventory and smarter pricing, bidding wars are back.

“Bidding wars back, so I think as a buyer, it’s really important to brace yourself and be prepared that you are not going to be the only offer for the home you are putting a bid on,” explains Halstead Property Executive Vice President Jill Sloane.

Sloane says five of her last seven deals have ended in a bidding war. One of them was for her client Caroline Dawson, a buyer who knew exactly what she wanted.

“I found this great place. I knew that I wanted to put an offer on it,” Dawson recalls. “It was fresh to the market so I made sure that I did right away, but I wasn’t the only one. There were a couple of offers there, so instantly it got into a bidding war and I knew I wanted to do what I had to do to get the apartment.”

Dawson knew she had to pull out all the stops to let the seller know she was serious about this property.

With Sloane’s help, she got the apartment – even though she was not the most qualified bidder.

What can you do come out on top in a bidding war?

For starters, Sloane says make sure your initial offer is a good one; don’t low ball if you know the place is well priced. And, once you find out there are other offers, respond quickly, and don’t play games.

“Ask yourself, ‘what’s it worth to me, what am I willing to pay for this home?” suggests Sloane. “As long as you are okay if you lose it at the price or get it at that price, but never let something go when you would have paid $5,000 more.”

And, Sloane says, be ready to act fast. Let the seller know you can have a contract signed in five days. But in order to do that, you must be pre approved and have your mortgage broker and lawyer ready to go.

Sloane says if you are not necessarily the most qualified buyer, you can set yourself apart by making it personal.

“Make it personal,” she says. “If you have seen 20 homes and this is the one you love, make it known. I think it’s really important to say, ‘this is the one I can see myself living in. I love the fire place, love the view, love the building.’ Whatever it is that made you want this home should be relayed in the offer.”

That’s exactly how Dawson says she got the home she bought.

Sloane says seller should make sure to review each offer, because the highest bidder may not be the best buyer. Sometimes the top bid comes from the person who needs to sell to buy, or the one who doesn’t have the best financials, but is trying to separate himself apart from the other buyers.

She says to read between the lines, because aside from the number, you also need to be sold on the right buyer.

Monday, April 12, 2010