Timing Clauses Stop Sellers From Inciting Bidding War

It is no secret that the current real estate market is hot, hot, hot. Sellers can receive multiple bids for their property on the same day. In the rush of the moment, your emotions can carry you into a bidding war. Using timing clauses can help avoid such a situation and protect you from buyer's remorse.

Timing Clauses ? Drop Dead!

A timing clause is inserted in an offer to avoid open-ended bidding wars. You do not want your offer to be "on the table" indefinitely. Such a situation inevitably leads to a bidding war where sellers "auction" up the price of home to a sellers benefit. To avoid this, you should choose to put a "drop dead date" on your offer. You would include language that says something like, "This offer is open until withdrawn or until 9:00 P.M. on Tuesday, June ____, 20__, whichever comes first."

Let's look at an example of how a hypothetical situation might work out.

Say the asking price of the home is $995,000. Your offer is $995,000 with a drop dead date of September 1, 2005. On August 29, 2005, the seller informs you of a competing bid for $1,000,000. While your immediate reaction is to panic and up your offer, you should instead calmly ask to see the competing offer. If the seller drags their feet or won't produce it, the bluff is called. Now the seller has to make up their mind before the 1st. They may decide not to accept your offer, but at least you will have avoided bidding against yourself. Alternatively, if the seller produces a competitive bid, you will know where you stand and make an informed decision on whether to raise your bid.

Timing clauses are fairly standard practice in most parts of the country. Make sure you use one to force the seller to make a decision. You don't want to be left twisting in the wind.

Raynor James is with http://www.fsboamerica.org - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit http://www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.

---

Want A $10,000 House?

How do you find a house for ten or twenty... Read More

Back To The Future - Big Changes Are Coming, Get Ready Now

The comments below are quoted from a recent speech by... Read More

Yes But, How Do I Evaluate Buying Undeveloped Land And Get Into The Business?

These real questions on buying undeveloped land are answered by... Read More

Investing In Commercial Property

Investing in commercial property is well beyond the financial means... Read More

Fixing Houses: Mixing Your Own Paint for Savings and Harmony

To make the maximum profit on your investment properties, you'll... Read More

Five Things to Help Sell Your Home Fast, and For More Money

Selling your home requires some thought and a clear plan... Read More

Youre Not Paranoid: The House Really Hates You

If you've just bought a house, you may be able... Read More

Property Investing Secrets 2

Property Investing Secrets:How You Can Turn A Below Average Deal... Read More

Building Your Dream Home - Part 1

For most of my adult life I had thought about... Read More

How To Find Your Dream Home In Belize

Shopping for property in Belize is not as simple an... Read More

Should You Allow Buyer To Rent During Closing?

It's not uncommon for an investor to sell a house... Read More

Why Invest In Property?

Why property, some people ask when looking for an investment.... Read More

How to Buy a Home When Your in Your Twenties

A Single's Game of Real Estate (Getting started in your... Read More

How to Buy a Property in Bulgaria

The CostAlthough the property prices in Bulgaria are quite low... Read More

Maintaining Small Town Charm In An Ever-Changing World

Virtually any state in the country has the appeal of... Read More

What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language

Financial literacy is the means of empowering consumers to make... Read More

Buying Houses at Discount Prices

Buying a house is the best way you can create... Read More

Your Home Equity Can Work for You

"Use your home's equity to pay off your debt. It's... Read More

5 Factors of Selling a Home

There are five major factors to consider when selling a... Read More

How to Price Your Property?

A house properly priced is half sold. But there are... Read More

Property for Sale in Bulgaria - Emerging Property Markets 1

The latest investment property headline is this: Popular and well... Read More

How to Attract Clients in Residential Real Estate

Doesn't it seem like everyone you know has a friend,... Read More

5 Hot Tips for Successful Real Estate Investment

The last downturn of the global stock market saw millions... Read More

How to Qualify For 90% Plus Commercial Financing!!!

There are three important questions that you must understand and... Read More

Tax Free Exchanges: Watch out for the New Residence Rules

On October 22, 2004, President Bush signed tax legislation that... Read More

Location, Location, Location

Location, location, location - known as the 3 most important... Read More

Dont Sell It Yourself

Don't sell it yourself! Sometimes a "FSBO," or house "for... Read More

Can I Sell My Private Mortgage Notes?

In this country millions of homes are sold every year.... Read More

First-time Home Buyers - 100% Home Loans

There is an increasing trend in South Africa that is... Read More

Setting Goals for Real Estate Success

The power of goal setting has been well documented and... Read More

New Homes in Ridgefield

Location:Frequent travelers will absolutely delight in this town! As part... Read More

RESPA: The Real Estate Settlement Procedures Act

The Real Estate Settlement Procedures Act (RESPA) is a consumer... Read More

Equity

Equity is the value of your home minus what you... Read More