What is a Multiple Offer Situation?
“Multiple offers” occur when a seller receives more than one purchase offer at the same time, or before a counteroffer is presented to a potential buyer and another offer is received. This has occurred fairly often since 2012 and has resulted in an environment that is increasingly frustrating to well-qualified buyers who repeatedly are outbid in their attempts to buy a home.
Tips for Seller Seeking to get the Best Quality Sale Contract
- Carefully select an optimal list price that will almost assure receiving more than one offer, yet is not so low that it could result in either leaving money on the table or in creating a hostile environment due to too many bidders.
- Consider investing in having pre-inspections done so buyers will know in advance the current condition of the property.
- Design a time schedule and procedures for offer presentation so all potential buyers know the protocol being followed.
- Remain disciplined to follow the guidelines once set. For example, if you stipulate showings of the property are to begin on Tuesday, do not be swayed by someone who claims to have all cash and begs to see it on Saturday!
- Be sure your agent’s office manager is fully involved in the process to assure fairness to all parties.
- Be careful to observe all the small details that may prove almost as important as the final contract price.
- Be considerate of all agents and their respective clients. You may not know in advance when something being communicated could harm your sale later on.
- Do not be greedy or push for every possible concession – you may regret it later.
- Be sure your agent does everything ethically possible to have at least one or two back-up buyers in contract in case the winning buyer cancels their escrow during the contingency period or tries to renegotiate the contract.
- Be sure your agent is fully prepared to deal with appraisal challenges in case the buyer is obtaining a loan and the contract price is much higher than recent comparable sales.
- Select an agent who is experienced in creating and managing multiple offers.
