“Bidding Wars” “Best and Finals” Unless you are the seller, it is a grueling process~
Yesterday I wrote about the importance of having a solid team behind you in this wild real estate market that we are in.
If you are a buyer in today’s market, I do not need to tell you that inventory is at a historic low and Open houses are having record attendance and most sales are ending up in bidding wars and going to best and final. Let’s face it, unless you are the seller …..being in the “War” is not fun….Unless you win~
Here are our tips on how to go into a best and final scenario:
1-I know that real estate is an emotional process for most people, but try to remove the emotions from “Best and Final” scenarios. Remain calm and focused.
2- You need to have as much data in your hands to know what the comps are with the unit you are interested in. Don’t go in this blind. Have an experienced agent arm you with information.
3-How long are you planning on living in this unit. I tell my customers all the time, that if they are planning on only staying in the units for 1-3 years, it could be very risky to get into a “Best and Final” situation and ultimately win the bid. Remember- just to break even, you would have to sell the property for approximately 110% of the price you for the unit.
4-Whatever final offer you put in, you should always be ok if you lose the apartment, because you bid, $10,000, $20,000 or $30,000 lower than the winning bidder.
5-Visit the apartment at least 2 -3 times before getting into the bidding war.
6- If you are not 100% familiar with the neighborhood, I would take walks on the street and the immediate neighborhood at a few different time frames during the day and night….even late at night. It is amazing what you will learn about the building and the neighborhood.
7-Know exactly what is needed to be presented to the seller’s agent for “The Best and Final” scenario.
You would hate to lose out, if you sent your offer in at the wrong time or did not furnish the required information.
8- If you lose the “War”, remember, it will only make you savvier for the next apartment that you may want. There will always be more apartments….so enjoy the ride!
If you need any advice, please email me at email@example.com or call me at 212.769.9807