A wide – variety of factors, generally, determine, which approach, is needed, and best, when marketing, and selling a house. Some of these include: the type of real estate market; specific property, etc; time of the essence; supply and demand; property’s price range; and current, local competition. Under, certain, specific indications, the best approach, might be, to create some sort of bidding war, in order to create, the best possible price, in the shortest – period of time, with the least degree of hassle, and associated, anxiety/ tension! This is another reason, and consideration, homeowners, must recognize, when they seek to sell their home. With that, in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 6 key factors, to consider, if a real estate bidding war, might make sense, for your specific property, at a particular, point, in – time.
1. Type of market: Real estate markets, are, often, cyclical, and, we witness, either, buyers, sellers, or balanced markets, or some combinations. Bidding wars often, are successful, in sellers markets, because, there is not enough inventory, to satisfy, the number of sellers, and, thus, properly pricing a house, often, brings forth, more interest, and higher selling prices! In buyers markets, one must examine, if that, condition, is true, for all price – ranges, or, only, specific ones. The same is true, regarding balanced markets. An expert, real estate professional, might offer, keen insights, into, whether, this approach, makes sense, for a specific property, and set of conditions, etc.
2. Type of property: Although, all properties, might, at – times, benefit, from this approach, usually, at any particular time, only certain ones, are best – served, by this! For example, when houses, are empty, because of specific ownership conditions, such as being a part of an estate, or the need for quick disposal of a specific house!
3. Time of the essence: Bidding wars, where it is known, it is a limited – time, scenario, and time is of the essence, where the best overall terms, wins, is an effective marketing and selling approach.
4. Supply and Demand: The economic concepts of Supply and Demand, also, often, drive real estate markets! It determines whether, buyers, exceed sellers, or, vice – versa, and, may help, to determine, when, and whether, bidding wars, might be an effective approach!
5. Price range: Usually, this approach, is only effective, when, there are few available properties, in a specific price range, in the area, and/ or, few, with specific features, etc.
6. Local competition: Knowing, when this makes sense, must be based on local issues, conditions, and competition, in the market place. The fewer, competitive houses, the wiser, more effective, this process, generally is.
Would the marketing, and selling of your home, benefit from using a Bidding War – strategy? When you hire your real estate professional, carefully discuss, the positives, and negatives, involved!