How to Survive a Real Estate Bidding War: 8 Tips & Tricks from a Land Development Realtor
If you’re a land developer, landowner or land investor, the chances are that at some point you will have to deal with a real estate bidding war. These situations can be stressful and frustrating for any of us, but they don’t need to be! In this blog post we’ll discuss 8 tips and tricks on how to survive a real estate bidding war from a land development realtor in Erin, Ontario.
Tip #01: Remain Calm and Collected
The most important thing to remember during a bidding war is to remain calm and collected. Getting worked up or emotional will only serve to aggravate the situation and make it more difficult for you to make decisions. Take a few deep breaths, stay focused and think logically about your next move.
Tip #02: Have a Strategy in Place
Before entering into a bidding war, it’s important to have a strategy in place. What are your goals? How much are you willing to spend? What are the other bidders’ weaknesses? By having a plan of attack, you’ll be able to stay ahead of the competition and come out on top.
Tip #03: Know What You’re Looking For
When looking for land to buy or develop, it’s important that you know exactly what you want and how much money you are willing to spend on it. This will help keep the process from getting out of hand; otherwise, the land agent may be able to convince you into purchasing a more expensive piece of land than necessary. Use this checklist as your guide:
Tip #04: Be Prepared To Walk Away At Any Time
Bidding wars can get heated quickly and if things start getting too stressful – leave! There is no point in spending hundreds (or thousands) of dollars just because one person wants something more than another does. If there’s no way for everyone involved to walk away happy then cut your losses and move on.
Tip #05: Be Willing To Negotiate In Good Faith
Make sure you’re willing to negotiate in good faith, land agents and sellers will be able to tell if you aren’t – don’t expect to get the land at your first offer price! Being honest about how much money you can afford (and are willing) to spend is a great way for both parties involved in the transaction to know where they stand with one another. It also helps prevent any unwanted surprises down the road. If land developers want fair market value, then landowners/developers should too!
Tip #06: Always Have Funds Available On Hand For Last Minute Bids
Just like anything else in life, real estate bidding wars come down to who has the most money on hand. If you’re serious about land and are prepared to walk away from a property, make sure you have the necessary funds available so that you can place a last minute bid if needed. This will show the other bidders that you are serious about acquiring the land and aren’t just wasting their time.
Tip #07: Don’t Get Emotionally Attached To The Land
This is easier said than done, but it’s important to remember that land is just land – it doesn’t define who you are as a person. Getting emotionally attached to a piece of land will only cloud your judgement and make it difficult for you to walk away when things get too heated. Remember, there will always be other pieces of land out there – don’t let this one consume you.
Tip #08: Have Fun!
This may seem like an odd thing to say, but remember that buying or developing land in Erin, Ontario should be a fun process! Enjoy the competition, enjoy getting to know the other bidders and enjoy the thrill of the hunt. Do whatever it takes to keep your mind off of the stress that comes with bidding wars and just have fun with it!
We hope these tips will help you in any future real estate bidding wars you may find yourself in. Good luck and happy bidding!