In the last few years real estate transaction dramatically changed and bidding war seem to be the norm when purchasing a real estate. But did you know that as a consumer you have a right and there are ethical practices real estate agent needs to follow? Let’s review some of them.
Bidding War and the use of Form 801.
The purpose of form 801 is to stop phantom offers and to discourage unethical practices. When making an offer it is important to have proper record keeping and a legitimate offer has to be accompanied by the form 801 that tells the time and date an offer was signed as a proof.
Real Estate agents keeps either the actual “Agreement of Purchased and Sale” or the “Form 801” with them as a proof that an offer was made.
As a full time realtor I have been in multiple bidding wars where I had to compete with 7-10 offers and successfully beat the competition with the use of property negotiation technique and the use of leverage and positioning.
A clear understanding of your position in a bidding war can save you tens of thousands of dollars from over paying. If you’d like to know more about the process and best practices including ways you can stay ahead and beat the competition call me and I will share with you the tricks and the dark secrets of bidding war.