What is a ‘bidding war’?
Q….. What is a bidding war?
from Zoocasa ASk the Pros
Natural & Planned.
The Natural bidding wars is nothing more than two simultaneously current offers being considered separately (but with details of both kept private)
A “planned” Bidding war is a purposed strategy created by the Owner and Listing registrant to compress the time required to obtain the highest price and exact closing date.
In the booming years since 1997, the Buy-Sell client had to “buy first” and then sell to match the already accepted closing date.
The concept “List Low – Sell High” solved that ‘already bought’ Seller’s selling need.
The Seller’s home is listed at 75%-95% of it’s anticipated market “target price” … offers are not considered for a period of 3 to 14 days and most often 2-35 offers are submitted for review on the appointed date.
All but 3-5 are immediately out-of-the running, and the finalists are bounced around against each other (without knowing their competitors bid)until a clear winner emerges.
2-34 buyers waste their time, 2-34 registrants waste their time, ~5-10 home inspectors do a pointless inspection and similarly ~5-19 law clerks/ legal secretaries + 2-30 mortgage reps spin their wheels.
After 2 or 3 unsuccessful runs at this strategy, buyers “make an atypical crazy bid” to win a home they really like in a bidding war that they hate to participate in.
Then they do the same thing with their own home’s disposition.