If you find yourself involved in a bidding war real estate experts say being a step ahead could be the key to victory. NY1's Jill Urban filed the following report.
With inventory so low, chances are if you are looking to buy a well-priced home, you could easily face a bidding war.
"In today’s world we are seeing an increase number of bidding wars mainly due to supply and demand," says Kiono Tucciarone-Thomas of the Morrell group of Brown Harris Steven.
Tucciarone-Thomas says if you’re a buyer you need to be ready to face some steep competition. She says once you know there multiple offers, don’t waste time raising your price incrementally. Just come in big.
"As a buyer you will be very emotional because it is competitive and you want to win. But stick to your budget, know what your limit is. You may have to get a little aggressive so don’t hold back and go for your best and highest," she says.
Tucciarone-Thomas adds if you really love the apartment, you should also do the math and see if you can stretch your budget a bit. Break it down on a monthly basis to understand your expenses. She also suggests making your bid personal.
"Sell yourself to them. Tell them a little something personal about yourself. Tell them why you are the most qualified or how much you love it and identify with the seller," recommends Tucciarone-Thomas.
If you are the seller, Tucciarone-Thomas says it's important to consider more than just the number. Choose the buyer who is most qualified and can pass the board and the bank if it’s not an all cash offer. You need to choose the person who can get to the closing table.
Also, if there are multiple offers, she suggests asking all the buyers to put in a best and final sealed bid. That makes it a one chance shot rather than a drawn out war. Also, she says it's key to be considerate and respectful to all your buyers because if the accepted offer falls through you may need to go back to the other bidders.
Now if there wasn't a bidding war, but someone comes to you with a higher number after you have accepted an offer, she offers this advice:
"Most likely the most fair thing to do would be to go back to your accepted offer and give them the chance to come up to that higher price. Let them make that decision what they want to do," says Tucciarone-Thomas.
Many buyers may not think that's fair considering the offer was accepted, but with such a tight market, the ball is in the sellers' court and buyers have to be willing to play by their rules.