4 Bidding War Best Practices for Rookie Real Estate Investors

As if buying or selling a home isn’t stressful enough, there is a pretty solid chance that you will become a regular participant in bidding battles as a real estate investor. On the plus side, property price wars don’t have to be super scary. The more bidding experience you get under your belt, the sharper your negotiation skills will become, and the more closing dates will be in your investing future.

Due to the fact that an increasing number of home sellers are eager to seal the deal as quickly as possible, this provides a golden opportunity for potential home buyers and financially savvy investors. The reason for this is because whether the motive is time constraints or rapid revenue gain, those selling their homes are more likely to be flexible in regards to original asking prices.

Unfortunately, the odds are, that if you are actively trying to pursue a particular place, someone else is just as interested in acquiring that same property. And thus, the bidding war commences!

Granted, some folks are just naturally good at negotiating, but that does not mean that novices can’t at least enter the bidding zone fully equipped with a surplus of knowledge and skills. If you want to be able to take sole credit for an impressive number of “SOLD” signs, here are four ways to beat out bidders and step up your investments game:

1.Language Learning – Don’t believe everything that you hear. Home sellers and their agents might tell you things in order to adhere to the original asking price, but such statements are not necessarily true. Use your best judgment and common sense to determine what is fact and what is fiction.

2.Pocket Pride – Bidding wars are stressful and can sometimes get heated. Don’t let your pride get the best of you. Stick to your guns, but don’t act overconfident. Remember, just because you put an offer on a property, there is no guarantee you will get it.

3.Waver Weakness – Even the best and worst negotiators still have specific strengths and weaknesses, which they are aware of. Know what your weakness is before entering competitive bidding matches, and do your best to keep it concealed. Divulging too much information can poison acquisition chances so it’s best to stay as consistent and concise as possible.

4.Conditional Competence – Prior to the bidding process, make sure you are completely up to date on current and local market conditions. Gather as much information that you can about the specific address for sale, as well as surrounding properties. Find out the answers to questions such as:

• What price are other houses in the same area listed for?
• Why is the house on sale?
• How long has this home been on the market?
• About how much are utility costs during the coldest and warmest months of the year?
• Has the original asking price been decreased at all?
• Is the seller under any time constraints?
• How many other interested parties are there?

The housing market is a fickle and unpredictable creature. No secret there. However, this should not make you fearful of real estate investing. Enter the final stage of the property buying process – the bidding battle – with excitement and confidence. Stay positive but keep an open mind. If things don’t work out exactly the way you planned, just remember that there are plenty of other options out there. In other words, there’s bigger pockets and better fish in the sea. And with great patience, comes great reward.