When looking at the most desirable Atlanta homes for sale, it's important to be prepared for bidding wars. A bidding war occurs when a seller attracts multiple qualified bids for a property—and it is happening more and more throughout the Atlanta area. Our real estate agents are here to help.

There are signs that home prices are beginning to plateau in many parts of the United States. Still, it's a seller's market: Low available housing stock and high competition are driving prices thousands of dollars above asking on a regular basis. Buyers need to be prepared for a potentially challenging time.

It may take three to six months of effort to find the right Atlanta home. During that time, it's crucial to keep your priorities in mind, but try to avoid falling in love with any one property. And if a bidding war breaks out, you'll need the right strategy to succeed.

A bidding war is no reason to be intimidated or give up. But it does mean you'll need to work closely with your real estate agent at every step of the process. You can still come out on top, but you should also be willing to walk away if the price rises too far.

Let's take a look at six crucial survival tips for a bidding war:

1. Bid Your Best
   Bidding war strategy has changed a lot over the last year. It used to be the case that competing bidders could start with a lower offer and might go through multiple rounds of bids. These days, however, most sellers want all the cards on the table immediately. With opening offers far above asking being normal, they have nothing to gain by prolonging the process. So, always assume your first bid will be your last!
   
   
2. Make a Strong Deposit
   The buyer's deposit is also called earnest money because it demonstrates your seriousness to the seller. If you don't follow through with the transaction, you don't recover the money. In the past, a deposit of 10% or even 5% could easily lead to the next stage in the journey. These days, you may need to look at 15% to stand out from the pack. Ask your real estate agent for advice.
   
   
3. Make the Offer Unconditional
   When a buyer adds conditions, the offer is less attractive to the seller without offering anything in return. Some conditions are essential, such as a home inspection, required by conventional bank financing. You should usually forgo most other conditions.
   
   
4. Don't Make Your Offer Late
   When there are many bids to consider, there may be a specific deadline to submit yours. If you miss this deadline by even a minute, your bid will usually be rejected out of fairness to the other participants. Be sure you understand the timeline and do any in-person tours beforehand.
   
   
5. Don't Make Your Offer Early
   Again, sellers can choose to make the process of entertaining multiple bids quite formal. In some cases, a seller's real estate agent may even be required to inform other bidders if a bid is received too early. If that happens, you'll face stiffer competition, so be sure to comply with the timeline the seller defines.
   
   
6. Always Work with the Seller
   If you're given a chance to revise your bid after rejection, it means the seller has some confidence you will be able to sweeten the deal and become the final owner. Prefacing a bid by saying it's your "final offer" only weakens your position!

Contact us for personalized advice on your situation.