In today’s marketplace, bidding wars are becoming more common due to the abundance of affordable acres of land for sale. Many people are looking to buy property at low prices, so they are competing with each other to see who will win and take ownership. When multiple offers are made on a property, this puts the seller in a position to maximize the revenue from the land sale through bidding, which drives up the prices of the offers. If you find yourself in a bidding war, follow these basic tips:
Determine Appraisal Amount
With the help of an agent, you should determine what the property will appraise for. Bidding something like 25% over the asking price won’t be worth it if the land doesn’t appraise for that amount. Once you determine the amount, you can set a cap on your highest offer.
Set Maximum Offer
In addition to the appraisal amount, you must also take into consideration the current interest rates and the price that you can afford to pay for property. It might be below the appraisal amount, but it’s important to determine the price that you are comfortable paying and not stray from that. If bidding goes into multiple rounds, be prepared to drop out if someone bids above your maximum offer. Knowing when to walk away is extremely important.
Choose a Strategy
If you are making the first offer on a piece of land and you think the property may get multiple offers, you can start by making an offer around the asking price. If you are making an offer on land that already has multiple offers, some of which are offering above the asking price, you should consider submitting your maximum offer immediately.
Keeping a level head in a bidding war will help you so that you don’t become overly spirited and end up submitting an offer that you aren’t able to afford just for the sake of winning. There will be other acres of land for sale in your price range that you will love just the same, if not more. If you are interested in affordable acres of land for sale, browse AllAcres.com for listings in the area. Call AllAcres at (855) 227-3741 or contact us online. We would be more than happy to locate acres of land for sale for investment or that you and your family can call home.