In just a few short years, the Metro Vancouver and Fraser Valley real estate markets have become so hot that multiple offer situations are the new norm. So, what are the rules?
Real Estate Bidding War Rules
It might surprise you to learn that there are very few official rules when it comes to presenting multiple offers. Real estate boards and licensing agencies have simply not been able to put rules in place fast enough.
Our local governing bodies have stringent rules about cooperation, ethics, and schedule of fiduciary duties. When it comes to multiple offers, however, there’s very little in the way of official guidelines.
If a seller expects bids, it’s generally to their advantage to review all offers at a scheduled date and time. Of course, sometimes sellers get excited if a “great” offer comes in before the posted time and will refuse to wait to see all the offers. On the other hand, sellers will sometimes refuse all the offers that come in.
Are you considering competing in a bidding war for a property? If so, it’s important to understand how the seller’s agent intends to manage the presentation process. You could be given a single opportunity put in your best offer. There may not be an opportunity for a counter offer. You may not be able to make changes to your offer once it is submitted.
It’s important to remember that it’s not always about the highest price.There may be other factors that the sellers are looking for, and ultimately acceptance of the offer is always the seller’s final decision.
If you want help making sense of it all, let’s chat.