In our market we definitely have our fair share of multiple offer situations, especially in the heat of buying and selling season. How do we handle them as a buyer and seller?
Buyer: You have found the perfect home, but so have 3 other people and after putting in your offer, your REALTOR delivers the news that other offers have been received as well. You may have even been notified of this up front before putting in your offer. One of the first things I do as an Agent representing a buyer is verify status of the property to ensure I am in tune with the interest level. If a property has been on the market for a bit of time, chances are multiple offers are not in the equation, but the potential is always there. There are some factors that will determine how you will compete with others in this situation. How strong is your financing, down payment, length of time to move, do you have another home to sell in order to move forward with this purchase, just to name a few, AND how much do you LOVE the property? In a multiple offer situation, sometimes people get caught up in the competition and intensity of it, so they are willing to pay more for the home than they would in a less tense negotiation. How can we try to avoid competing with other offers? First, consider the time of year you are shopping. If you have a very strict budget and are shopping in a competitive price range, if possible, try to avoid shopping for a home when the majority of other people are. If this is unavoidable, we will discuss, in length, the strategies we will take.
Seller: You have prepped well to list your home. Your REALTOR feels strongly that you have a product that will be in high demand, however nothing is guaranteed to bring multiple offers once you hit the market. But they come and you are SO excited! In most situations, multiple offers tend to come very quickly after a property is marketed, but that doesn’t mean it isn’t possibly after either. Trust in your Agent’s experience and expertise to evaluate each and every offer received to determine if: A) you want to select one to move forward with or B) you want to request that each person who has interest is given the opportunity to submit their highest and best offer by a certain day and time. There are a few factors to keep in mind while driving the price up. Will the property appraise for the agreed purchase price and if it does not, then what? What is the circumstance of the sale with each and every buyer…..is it contingent upon another sale, what are their financing terms, can they close when it is convenient for you, so on and so forth. Selecting the highest price is not always best.
In any negotiation, your REALTOR will provide you with the best advice possible, but the ultimate decision is yours!