Real Estate Strategy In 60-seconds from Ali Safavi

Creating A Reverse Bidding War

At Ali Safavi Real Estate, we know sellers often list their properties for under market value.  Why?  To get a bidding war amongst buyers.  More often than not, the property sells for above the original asking price.  Well, why can’t buyers do this with sellers?

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Ali Safavi Real Estate Tip

What if the same buyer had 2 different LLC’s that both submitted all cash offers on a property?  For example, the asking price is $800k so LLC1 offers $750k but LLC2 offers $685k.  Of course the seller, all things being equal, will take LLC1’s offer.  But what if during escrow, LLC1 decides to pull out of the deal.  The seller, if motivated, will turn to LLC2 to start the negotiation process!  This is what I refer to as a “reverse bidding war.”  I would consult your local real estate attorneys, realtors, and tax professionals to ensure this is in compliance with local rules and laws.  However, why not turn the tables in an otherwise competitive market??  Food for thought…

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