Bidding When Selling an Apartment - Strategies to Get the Highest Possible Price

When you sell an apartment, bidding is one of the most crucial parts of the sales process. A well-managed bidding process can mean tens of thousands of extra kronor in the final price, while a poorly handled bidding process may result in not getting the full value of your home. In this guide, we go through how bidding works, strategies to help you maximize the sale price, and what you should consider as a seller.

How Does Bidding Work When Selling an Apartment?

The bidding process starts after viewings have been conducted and interested buyers have left their contact details. The real estate agent informs the buyers about how the bidding will take place and then receives bids via phone, SMS, or digital platforms. There are mainly two types of bidding:

Open bidding - All buyers see each other's bids, often leading to a dynamic and fast-paced bidding process where the price can rise quickly.
Closed bidding - Bids are communicated only between the agent and the seller. This method can create more strategic bids and increase the pressure on buyers to submit their best offer immediately.

As a seller, you always have the right to choose which bid to accept – the highest bid is not always the best. Factors such as the buyer's financial situation, conditions, and move-in date can also play a major role.

Strategies to Maximize the Price in Bidding

To ensure you get the highest possible price for your apartment, there are several strategies you can use.

Set a Competitive Starting Price

An attractive starting price attracts more buyers and can create a heated bidding war where the price quickly rises.

Let the Bidding Last Long Enough

Giving bidders enough time to think and outbid each other can benefit you as a seller. A rushed bidding process can lead to buyers withdrawing earlier than necessary.

Have a Clear Bidding Strategy with Your Agent

An experienced real estate agent knows how to manage the bidding process effectively. Discuss with your agent how you can create a tactical bidding process based on interest in your apartment.

Don't Be Afraid to Wait

If you don't get the bid you want right away, it may be wise to remain patient and let bidders feel the competition. Sometimes, a strategic delay can lead to higher bids.

Common Mistakes to Avoid in Bidding

Managing the bidding process correctly is crucial to achieving the best possible sale price. Here are some common mistakes to avoid:

Accepting the First Best Bid Too Quickly

It can be tempting to accept an early bid, but there may be more buyers willing to pay more.

Setting the Starting Price Too High

A high starting price can deter buyers and result in a slower bidding process.

Ignoring Buyer Conditions

The highest bid is not always the best if the buyer has uncertain conditions, such as an unsecured loan approval or long move-in requirements.

What Happens After the Bidding?

Once you have accepted a bid, it's time to proceed with the contract signing. The agent gathers all the details and ensures the contract is legally correct. The buyer usually pays a deposit (typically 10% of the purchase price) at the time of contract signing. After this, the property is officially sold, and the final step is the handover, where the remaining purchase amount is paid, and the keys are handed over to the new owner.

Summary

The bidding process is one of the most critical moments when selling an apartment. By setting the right strategy, working with an experienced agent, and avoiding common mistakes, you can maximize the final price and secure a smooth and profitable transaction. Do you want expert help with selling your home? Learn more about how we at Notar can help you achieve the best possible bidding process and the highest sale price: Sell an Apartment with Notar. We guide you through the entire process - from the first viewing to a successful sale!