You found the home of your dreams ….. You finalized your offer and are waiting for your Realtor® to present your offer to the seller and the phone rings ….. Your Realtor® has some bad news there are now other offers ….. You want to know what it will take for you to get the home of your dreams.
Unfortunately the only information the sellers Realtor® is required to disclose is the number of offers. What you really want to know, the terms and condition’s of each offer, is confidential to the seller and their Realtor®.
Multiple offer situations create unique conditions in a real estate transaction where both buyers and sellers need to consider carefully how they respond. Working closely with your Realtor® of choice will ensure that you understand the process.
Working with a Realtor®
The seller’s Realtor® represents the interests of the seller(s) advising them on dealing with the offers. The final decision about how offers are presented and responded to, or which offer is accepted or rejected, is made by the seller(s).
The buyer’s Realtor® represents the interests of the buyer(s) advising them and preparing the offer. The buyer ultimately makes the final decisions on their offer, including the important decision of whether or not they want to participate in a multiple offer situation.
On occasion, the Realtor® may represent the interests of both seller(s) and buyer(s).
In a multiple offer situation, buyers are often tempted to offer more than the asking price for the property and/or remove conditions that are intended to protect them. Bear in mind that a multiple offer situation doesn’t necessarily mean the property will sell over asking. Likewise an offer that meets or exceeds the asking price doesn’t guarantee that a buyer’s offer will be accepted.
Before participating in a multiple offer situation, buyers should consider factors such as:
How much can the buyer afford to offer for the property and how much is the property worth? A high offer could enhance the buyer’s chance of success. However, it may not be the best long-term financial decision for the buyer.
While we recommend buyers get prequalified for any financing you may need pre-qualifying for a mortgage does not safely
eliminate the need for a financing condition in their offer.
In multiple offer situations, it may be tempting not to include a condition on a home inspection. While your offer might be more acceptable to the seller, foregoing a home inspection can put the buyer at risk for required repairs or needed upgrades that they weren’t aware of.
Additional Resources For Buyers and Sellers
Tips for Buyers and Sellers on How to Handle Multiple Offers an article by Karen Highland
7 Tips To Help A Home Buyer Win In multiple Offer Situations by Kyle Hiscock
For Sellers How To Choose The Best Offer On Your Home by Bill Gassett