What You Need To Know About Multiple Offers
Last year, or the year before, many of us would not have thought this possible again. But Folks. Here we are, back at it.
Yes. We are talking about dealing with multiple offers on properties. Example. Yesterday we put a home on the market at 7 am. By 7 pm we had 6 offers with promises of more to come. All great offers. One party happy, the other five scratching their heads, wondering what happened and why.
So what really happens when there is more than one offer on the table? Other than the anxiety of buyer, and believe it or not seller too.
There are several ways the Seller and their agent will deal with this situation.
- They might want to look at all offers and simply accept one.
- They might look at all offers and pick one to negotiate. In this case, they will try and come to terms on this offer. If it doesn't work, they will move on to the next, but
- More than likely, they might go back to all potential purchasers and ask for their highest and best offer.
Highest and Best Offer
If you are involved in a multiple offer situation and the seller asks for every one's highest and best offer, consider the fact that the best offer might not have the highest price. Don't get me wrong, there are many sellers out there that are looking for simply the highest price, but I can guarantee you that this is not always the thing that seals the deal. Depending on the sellers circumstances, contingencies and terms may count heavily in their decision on what offer to pick.
So, having said that, Evaluate your contingencies and decide what is really necessary and important to you. Delete all that are unnecessary. Do you really want/need that swing set in the back yard? Look at the comps and know your finances. Figure out what is the most you are willing to spend and go for it. This might be the only chance you will have. Trust me. Losing a property over a small amount of money when you know you would have paid more will haunt you for the rest of your life. I know. Been there personally and done that.
The Listing Agent's Role.. The listing agents role is to counsel the seller, present any and all offers, and to treat all equally and ethically. I would be very surprised if any listing agent shared the terms of an offer to another. You will be on your own to come up with that best and final.
The Buyers Agents Role.. Their role is to assist a buyer in coming up with their best offer. Evaluating the market, comps and contingencies, making strategic and judgement calls as to what might beat out the competition.
So know you know how your offer will be dealt with if you are involved in this type of situation. Check out.
About the author
Carol-Ann Palmieri is a full time Real Estate professional in Massachusetts for the past 25 years along with her partner Al Mussi have helped literally hundreds of families find, sell or purchase new places to live.
A former US Marine, she grew up in Walpole, MA... is committed to the serving the community through various volunteer opportunities. She attended MA Bay Community and Suffolk University and is committed to constantly updating her Real Estate education.
Al and Cal Licensed in MA and RI...
Al and Cal's primary areas of service Franklin, Bellingham, Medway, Millis, Medfield, Norfolk, Wrentham, Plainville, Blackstone, Walpole, Milford, Holliston, Hopkinton, Mansfield, and Foxboro, North Attleboro, Norwood, Hopedale, Mendon, Millville but have resourses to help anyone, anywhere....
Their mission.... To exceed your expectations!