Multiple Offers For Your Home
– Buying and selling real estate can be some of the most stressful things in life. Add in the proposition of having multiple offers and the stress becomes even more real. With the real estate market finally back on track, it’s not uncommon to see situations with multiple offers. Especially when a property is priced right. Let’s review receiving multiple offers for your home.
For The Seller
Inventory levels are low and buyers are making offers on the few listings that are available. When dealing with multiple offers on the same property, a seller can quickly become overwhelmed and confused. Obviously the best thing to look for is which offer features the best price, terms and conditions. But it’s not always that simple. Valuable consideration must be given to all offers. Many listing agents will ask the parties to present their “best and final offer” and then provide those collective offers to the seller for review. In this type of situation, the seller does have the upper hand as none of the buyers will have an idea of what the other parties are offering. The most common occurrence in this type of scenario is for the seller to accept one of the offers and reject the other offers. Other possibilities include the seller either rejecting all of the offers or alternatively reject only one offer and work with the others to see which party can come up with the best price, terms and conditions. As a seller’s agent, there is a fiduciary responsibility to the client to gain the best possible terms and conditions. We have seen times where a seller didn’t always choose the highest price as they have gone with the better financing option or a better timeline.
For The Buyer
Being in a multiple offer situation can be stressful and having a real estate agent that has experience in a multiple offer situation can be paramount. Keep in mind that all buyers should be treated fairly and a real estate agent is not allowed to discuss terms of other offers even if they know them. In the case that the buyer’s offer is not the one chosen, it can feel like a letdown. Losing the bidding war on a house can be frustrating and also heartbreaking.
A buyer should always consider what is the most important to the seller. Perhaps the price isn’t as big of a deal as allowing the children to finish out the school year in the same school. There are a variety of ways that a buyer can enhance an offer to capture the seller’s attention:
– Get pre-approved by a lender
– Remove all contingencies
– Don’t ask for seller concessions
– Increase the escrow deposit over the normal amount to show how serious you are
– Decrease the timeline to complete due diligence
Additionally, understanding what the seller’s situation is can be important in presenting a standout offer. If the seller is moving to a new area for a job, perhaps they need a quicker closing. In the case of a multiple offer situation, always make sure to put your best foot forward and not try to lowball the offer if you want it to be seriously considered. Multiple offers usually mean just one chance to capture the buyer’s attention.
Dealing with multiple offers can be tricky. Not only for the real estate agents involved, but also for the buyers and/or seller. Being ethical in all dealings is also a critical component of handling multiple offer situations. Many seller’s agents look forward to the proposition of receiving multiple offers while buyer’s agents tend to dread the multiple offer situation scenario. The goal is to handle all offers objectively and also promptly. Multiple offers can be a seller’s best friend as it allows the seller to be in the driver’s seat for the transaction. In a multiple offer situation, only one party will be lucky enough to gain the winning bid and the property and the other parties will be left disappointed and back in the market looking for another property.
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