The homeowner that receives multiple offers may use the opportunity to work on buyer’s feelings and natural competitiveness, therefore it’s very important that a potential purchaser stay calm and not permit these strategies to influence their thinking. Real estate agents are likewise subject to playing off both the buyers and sellers to make their commissions higher and closure rates more impressive. Certainly there are established rules of engagement that deal with such situations, but they are not always honored — so everyone involved has to stay on their toes and alert for indications of foul play.
To curtail unethical tactics that come about in the bidding procedures, some provinces literally make it against the law for homeowners to list any price that they do not plan to accept just to start a bidding war. There are certain regulations regarding multiple offers that require non-disclosure of details while demanding that any alterations to the bidding procedure must be reported to everyone before implementing. But in the search to obtain a higher bid, many times proprietary information is intentionally given away or even distorted to motivate the other bidders. A major metropolitan area is accustomed to multiple bidding but now real estate in Barrie is is experiencing a similar scenario.
The best strategy when a buyer is dealing with a multiple bid situation is to put forth the best offer they are able to and put the least number of stipulations and conditions as they can into the proposed agreement so the homeowner will be attracted by straightforwardness and, hopefully, the the offer price. The tendency of buyers to get excited or nervous and make extravagant offers is exactly the kind of scenario that could be effortlessly misused by turning down a very good offer to try and get more money from the buyer. In small sections of homes, like Alton Village there may not be an abundance of available properties which may increase the demand and number of offers.
Negotiating tactics frequently incorporate an agreement between the owner and their agent not to disclose multiple offers, and purchasers in these circumstances are not even aware that there is competition for their offer. The majority of homeowners, however, are very keen on letting all purchasers know that they are anticipating other offers, although it then becomes their responsibility to make certain no confidential facts leak out and that the bidding remains equitable for all parties. This does not stop some realtors from shopping around with other agents by making it public that bidding has started on one of their listings. In less active sectors like Windsor real estate listings it is entirely understandable as homeowners want the maximum dollar amount from their properties.
Another tactic often used by unscrupulous sellers is misleading prospective buyers, and even their agents, by entertaining offers they have no intention of accepting just to panic the other purchasers and initiating a bidding war. A few sellers even begin with a very cheap price in hoping to produce a frenzy that will generate bids so high they actually go over the value of the home. But such schemes may backfire when people talk inside the real estate community that a seller is influencing a bidding war because they will quit bringing their buyers to look at the property.
