Real Estate

How did you win bidding war on a house?

  • Last Updated:
  • Sep 23rd, 2021 6:09 am
[OP]
Newbie
Aug 17, 2021
62 posts
32 upvotes

How did you win bidding war on a house?

How did you bid successfully on a house?
Did you go in with maximum price right from the beginning or left yourself room to increase?
We just lost with $2000 difference... Winner also offered price that had seller's house number in it...
Any advice please?
104 replies
Newbie
Jan 9, 2021
97 posts
64 upvotes
andreagasparova wrote: How did you bid successfully on a house?
Did you go in with maximum price right from the beginning or left yourself room to increase?
We just lost with $2000 difference... Winner also offered price that had seller's house number in it...
Any advice please?
Preemptive Bully offer with fast deadline.
Deal Fanatic
Mar 27, 2004
5871 posts
3782 upvotes
Toronto
andreagasparova wrote: How did you bid successfully on a house?
Did you go in with maximum price right from the beginning or left yourself room to increase?
We just lost with $2000 difference... Winner also offered price that had seller's house number in it...
Any advice please?
ultimately it's the price and closing date. people are looking for record prices.
Full-time Realtor
Deal Addict
User avatar
Jul 4, 2009
1149 posts
347 upvotes
Mississauga area
SunriseRealty wrote: Preemptive Bully offer with fast deadline.
That's what we did as well when we bought.
Also, that's how our house was sold. Someone made a preemptive bully offer and it was an amount that we were willing to sell for.
Deal Fanatic
May 22, 2003
7140 posts
4035 upvotes
Vancouver
SunriseRealty wrote: Preemptive Bully offer with fast deadline.
We just did this yesterday on an investment property. We did a viewing first day after it got listed. Put in a bid right after with 5 hr expiry deadline before many people even got to view. Got the house. A couple houses we were interested in also got sold via bully offer before we got to view them.
Deal Addict
User avatar
Nov 30, 2005
1330 posts
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Ottawa, ON
Go all in and offer them your first born.
Member
Nov 10, 2019
343 posts
259 upvotes
Advice is it depends on the number of bidders and how much you like the house. Ex. If your agent tells you 1-3, you probably want to stay relatively close to asking.
Member
Jun 15, 2015
439 posts
484 upvotes
Thornhill, ON
I always have an extra $1M just in case someone wants to overbid me. It's just like playing poker. The one with the bigger pot always win.
[OP]
Newbie
Aug 17, 2021
62 posts
32 upvotes
Interesting about those Preemptive Bully offers... thanks for advice.
[OP]
Newbie
Aug 17, 2021
62 posts
32 upvotes
notenoughsleep wrote: We just did this yesterday on an investment property. We did a viewing first day after it got listed. Put in a bid right after with 5 hr expiry deadline before many people even got to view. Got the house. A couple houses we were interested in also got sold via bully offer before we got to view them.
aha... the key is to be very fast... and there has to be the expiry deadline... otherwise they would just wait and see what will they get on offer day.
Deal Fanatic
Dec 20, 2018
5519 posts
4590 upvotes
andreagasparova wrote: aha... the key is to be very fast... and there has to be the expiry deadline... otherwise they would just wait and see what will they get on offer day.
usually offers are irrevocable for only 24hrs anyways , you want to ensure the irrevocable period is well before offer presentation. so key is to submit early...imo if you do it in early days, 5hrs vs say 24hrs isn't going to make a big difference depending on when you submit it..eg if at night, you'll need longer than 5hrs..if it's early in day, you can probably try 12hr. This assuming the owner is present/available/reachable
Member
May 10, 2017
366 posts
236 upvotes
With multi bidding offers going on, some sellers who feel confident don’t like to take pre-emptive offers
Or they expect something really ridiculously out of the blue moon high

But it’s worth a try.
I usually gave 4 hours for sellers to make a decision and then moved on to next house
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Newbie
Jul 27, 2020
32 posts
19 upvotes
Be one of the first to see it and bully offer with just a few hours for them to make a decision. If it’s around where the buyers are looking to sell they may just make a quick emotional decision and save you $$$.
Member
Oct 6, 2020
416 posts
696 upvotes
Bought a backsplit back in 2015 in Oakville and was in a 13 person bidding war. House was listed at $675,000, which we knew was low since comparables were going for $800ish at the time...

We bid $805,000 (and said it was our absolute max) and it came down to 3 people.....we then increased to $825,000 and got it.

6 years later, neighbors around us selling for $1.5-$1.6 for houses with smaller lots than us....ours is 70 x 210 feet.

So overall, very happy we stretched out budget out slightly because if we waited an extra year or two.....not good.
Newbie
Aug 20, 2021
14 posts
5 upvotes
This is how we sold our last place. Pre-emptive offer, flexible closing, significantly over what our neighbours (much nicer upgraded) unit sold for, and obviously, no conditions. My partner wondered what it would have sold for if it had gone to bidding, but the peace of mind to know that it sold fast made up for it.
Newbie
User avatar
Dec 28, 2020
41 posts
67 upvotes
Gave a price I knew they'd lose sleep over if rejected, but not so high that I'd beat everyone else by a huge margin. No condition, same day deadline, flexible closing date. If seller is Chinese, put some 8's in your offer (888).
[OP]
Newbie
Aug 17, 2021
62 posts
32 upvotes
Cool... thanks everyone... all are the great helpful hints.

If your bully offer is slightly above the comparable price and it is rejected but you have room to offer more. Can you still try on offer day?
Deal Guru
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Mar 31, 2008
12255 posts
2449 upvotes
Toronto
oasis100 wrote: ultimately it's the price and closing date. people are looking for record prices.
Don't forget no conditions and biggest deposit check possible. Like 5%? Forget that. Triple it!
Deal Addict
Mar 2, 2017
2206 posts
3909 upvotes
Toronto/Markham
Yes, I've rejected bullies many times only for them to come on offer date or day after first bully with an even more aggressive offer and blowing everyone out of the water.
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Deal Addict
Mar 2, 2017
2206 posts
3909 upvotes
Toronto/Markham
at1212b wrote: Don't forget no conditions and biggest deposit check possible. Like 5%? Forget that. Triple it!
As crazy as it is, deposit does sway some sellers a lot. If you are the 2nd or 3rd closest offer on a 1.5M house but you come in with 300k vs. 80k like everyone else and everything else is the same assuming offers are relatively close a lot of sellers will lean to take the large deposit even if it means leaving some money on the table. It really depends on how you stack up to your competing buyer profiles and sellers' risk tolerance.
Realtor, Investor, CPA - Collaborate with like minded people

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