Bidding Wars

[Ben Lawrence]

Hey everyone,

I'm just starting out so I don't know all the roles. I'm looking for a personal house right now. I've put an offer in on a house, it took them 14 days to answers back with no other bids coming in and the day before they cameback with an answers they said another offer came in higher at asking price. So the bank said to both buyers bring your best offer. All the house I have looked at end up going in bidding wars and going over the asking price. My Questions are. Is the Bank lying? How can I stop this from happening? Is there other ways to find foreclosed homes before they hit MLS and go in to bidding wars? Can you get the Bnak to answer faster?

Thanks Ben

[Eddie Ziv]

What I learned from situation like this is to set the price ahead of time. When looking at a property, always set the price you are willing to pay before even submitting an offer. That not to say that the price you have in your mind should be in your offer, but if you do, that number is set.
From that point and on, it really doesn't matter how many offers are out there. If someone is willing to pay more than the price you are willing to pay, it is his or her business.

There is a big difference between a property you buy for your family to live in or an investment property. The first one, has many decisions that don't play in the second one, and vice versa such as taste, family needs, area, schools etc.
If you buy for investment, it is all about the numbers. Flipping - cost, rehab, profit margin. Buy-n-hold - Cash flow and ARV.
etc.