What is a multiple offer? A seller may like them, and a buyer may not. A multiple offer means that the house is priced right, in a desired location and many buyers are interested. But the true meaning is that many people are competing for the house that you as a buyer so love and there are several offers. This a good reason to hire a REALTOR®. A multiple offer situation can be very confusing and frustrating.
So, let us discuss what to expect if you are a seller. You have several showings, back-to-back, within the first day or two of the listing. While this can be a bit overwhelming, it is a good thing for you as the seller. The more showings, the more chances of offers. Your agent may bring you several offers and will help you negotiate each one. But do you have to negotiate with each offer? You do not. The best option is for your agent to send a multiple offer form and ask for all offers to be in by a certain time. Every offer will be different. You should do what is best for you and your family. Do not let emotion guide you, consider not just the monetary value but the inspection dates and buyers requests.
How do you negotiate all the offers? First, you should review them and determine if the terms meet your selling needs. Do they want a 60-day closing and you need 45 days? Do they want you to assist them with closing costs and money is tight? Are they asking for your washer and dryer and you need to take them with you? These are all things that you can negotiate. Let your REALTOR® help and guide you. He or she is working to represent you and to get you the best and highest offer.
A buyer may not be as excited as the seller to learn of multiple offers. Some may not want to compete; others will go over asking price. Again, your REALTOR® can help. Emotion will be driving you to get the house. Make sure you are not going over market value when making the offer.
Sometimes homebuyers wonder if it is even worth trying to compete against other buyers in a seller’s market. It is not unusual for a seller to receive 5 offers when there’s little inventory on the market. It is almost always a good idea to write an offer anyway. Somebody will be the winning offer. Why can’t that person be you?
In the end, a multiple offer situation will be exciting and scary at the same time. You can only accept one offer so make sure you ask advice from your family, REALTOR® and any other advisor that you trust. This is a huge purchase for everyone and must not be taken lightly.
Happy Graduation weekend to all the high school graduates and especially my beautiful daughter. Have a great weekend and Remember to do good things!