Al and Cal Homes and Community: What You Need To Know About Multiple Offers

What You Need To Know About Multiple Offers

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.   

Multiple offers, involved in a multiple offer

 

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.  

Tips to Win at Multiple Offers

 

____________________________   

 

About the author

carol ann palmieri
 

 

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!

 

Carol-Ann Palmieri

Al and Cal Realty Group

Remax Executive Realty

www.AlandCal.com

 

Cal@AlandCal.com

 

508-494-9061

 

Comment balloon 46 commentsCarol-Ann Palmieri • May 11 2013 04:15AM

Comments

Good morning Al and Cal. You are right on with this: it isn't always the money but it certainly s the sellers first thought. There are many ways to make an offe more attractive to a seller. Nicely done and suggested.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) over 5 years ago

I believe that there's too much emphasis in many blog posts about price in multiple offers.  You're right in that contingencies and terms may overcome a lower priced offer.

Fact is, the listing agent may manage multiple offers any way they wish as long as it's within their broker's policies.

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 5 years ago

Hi Sheila.     I've seen folks go high with their offers, just to beat out the competition only to knock the price down with their contingencies later.    Thanks for the S.   :)

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Cal, you've hit the important part that clean is in many ways more important than green. 

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 5 years ago
Hi Carol, I think you hit it you stated that sellers have to look at what is important to them. Too many sellers are fixated on "getting their price" and stuck with the property longer than necessary basically using up any potential gains from a higher offer. There is a reason why it says time is money.
Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) over 5 years ago

Hi Lenn.   It is stressful on all involved when there are multiple offers on the table.   Listing agent right up there.   The most money is often not the best route to take.    Knowing the office policies makes an agents life easier.  

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Hi Pat.   Sometimes that high offer costs in the long run!   

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Hi Silvia.   Exactly.  Sometimes it is hard getting folks to understand.  :)   Thanks!

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

We are seeing the same thing here.  It's scary for buyers right now!                                                                                  

Posted by Amanda Christiansen, Christiansen Group Realty (Christiansen Group Realty (260)704-0843) over 5 years ago

I agree strongly with your comment about not losing a property over a small amount of money, when you know you would have paid more.  So true!  Very good advice to buyers here!  There's no point in wasting time by holding back, thinking you are leaving money on the table.  Consider your "highest and best" and go for it!  If not, somone else will and you'll be back on the hunt.

Posted by Kate McQueen, Tailored service for your real estate needs! (CB&A Realtors) over 5 years ago

Carol Ann, yes and I would add know what the appraisal may come in at and if you are not putting 20%+ down you may not get the loan.  THis happened to a buyer last year in a transaction I had and the seller had to come down to get it sold. Highest and best does not always work out to your advantage...know your comps very well!  good share

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) over 5 years ago

Good morning, Carol Ann.... terms and conditions are as important as price.... we are not seeing anymore lowball offers...everyone pays the price or better...the terms and conditions are important.... the closing date is important....many things can happen with a long closing, as an example.

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) over 5 years ago

It's so rate in most cities/towns that we regularly see multiple offer situations that many agents and their clients don't have a clue as to how to best negotiate in such an environment. So when the current environmnet which is increasing the frequency of multiple offers "srrives," people seem to be caught unawares and lose homes because they don't understand the process and psychology.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage | Charlotte, NC) over 5 years ago

This is the scenario that is playing out in almost every transaction in my market for homes under $150k.  This has become one of the main points we put across to our clients at our initial consultation.  We educate them on how the market is and what to expect.  As frustrating as it is to lose out on a multiple offer situation I still feel pretty good about the real estate market and how much it is heating up.  Home's are flying off the shelf right now and buyer's are seemingly getting smarter.  The day's of waiting a week or so to "think" about putting an offer on a home are gone.  What I am seeing a lot of is my client's putting offers on at least two homes because of how competitive the market is right now.  This way they are more than likely to win on at least one of them.  

Posted by Michael Janik (Island tradition Properties) over 5 years ago

Carol Ann, there is more to negotiating an offer than just boosting the dollar amount. Good points!

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA over 5 years ago

Great post Carol. I agree that the highest price offer is not always the best--with the help from the realtor, seller needs to evaluate contingencies and other factors

Posted by Wika Hutchinson, Broker, CRIS, SFR, CDPE over 5 years ago

Great post Carol Ann...one of the most important things is that comps still matter (at least in my market).  If you put some ridiculous price just to get the offer, then as a listing agent, I need to counsel the seller that the home may not appraise.  

Terms can be just as important as price!  Congrats on the feature!!

Posted by Brenda Mullen, Your San Antonio TX Real Estate Agent!! (RE/MAX Access) over 5 years ago

In a multiple offer situation it is highest and best that usually get the property.  As you mentioned contigencies do play an important part in this situation.

Posted by Keith Lawrence, ABR, CDPE, SFR, 203K Specialist (RE/MAX Properties) over 5 years ago

Miss Cal, Another featured post by you and an excellent one to boot. Congrats.. Excellent advice to both buyers and sellers. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) over 5 years ago

I just went to a class this week offered by our board but presented by an attorney. I was surprised at the number of misconceptions agents in the room expressed. For example, one agent (who has been in the business 15 years), thought we were required to notify all buyers of multiple offers. Wow, really? Of course, the answer is no.

I recently experienced a multiple-offer situation where the seller just picked the best offer. The terms were more important to him than price. One of the agents, b------ me out because she said we should have come back for "Final and Best". That's not required. The seller gets to decide.

Posted by Tammie White, Broker, Franklin TN Homes for Sale (Franklin Homes Realty LLC) over 5 years ago
Great post and I would agree, the highest and best doesn't always work, unless it's cash with No contingencies,and I have seen that before, where a buyer paid $20k over appraised price because they really wanted the home. As always seller gets to make the final decision, what will work for them, whether it's price or conditions. Most sellers want a quick sell with no hassles so they can move on.
Posted by Graziella Bruner, Associate Broker - Serving Wayne & Oakland County (NCS Premier Real Estate) over 5 years ago

Agents remarks plays a big part in this process...having many offers is not what it appears to be...It all comes down to one good offer and the listing agent should define what that is and when received....go with it..good post

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 5 years ago

So many focus on the price alone. The price and terms need to be evaluated to determine the best offer. Congrats on the feature.

Posted by Kathy Stoltman, Ventura County Real Estate Consultant 805-746-1793 (Rockwood Realty) over 5 years ago

Recently I represted and buyer and the main reason we got the property was because there was a tennat and my buyer was an investor and did not ask that the tenant be removed before close of escrow.   The seller did not want to evit the tenant for "Home" buyers so we better met the sellers desires. 

Posted by Mike Crosby, Placentia- Yorba Linda Real Estate - 714-742-2897 (Mike Crosby Realty) over 5 years ago
"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.".............................................. So this begs the question. Is the listing agent really doing their client a dis-service by NOT telling buyers agents what the other offers are, or at least what is the best and highest so far? If there is another buyer willing to pay a higher price but they do not know what the highest is so far, they may not top that offer. Later they find out what it sold for and the seller finds out they could have got more for their house, does this put the listing agent in a situation where they didn't hold up their fiduciary duty to their client. Does that open the door for a lawsuit? Several people have said this would be up to the brokers policy, but shouldn't it be up to the seller to decide if they want others to know what the offers are? Too many times the listing agent just decides themselves whether to tell buyers agents what the other offers are, without considering what is in their clients best interest. Now in a buyers market it may be best to hold offers close to the vest, but in a sellers market?
Posted by Frank Nolan, Jump and the net will appear (Nolan Realty Team / Pacific home Brokers) over 5 years ago
Carol Ann, great post! In our area we have been dealing with multiple offers for over a year now. I have had buyers who were up against as many as 37 other offers! We have had to get very creative in order to make our offer stand out. The supply is low and demand high, and sellers are realizing that they, too, will likely be up against multiple offers when they buy their next home. Since most sellers need to sell their current home in order to buy their next home, there could be a great deal of nail biting!! When representing buyers, we are offering a one to two month seller "rent back" for free. This enables us to close and gives the seller the opportunity to stay in the house while looking for the next one. It's a great way to sweeten the deal, and removes the sellers fear of being homeless!
Posted by Jayne Esposito, SRES, GREEN (Coldwell Banker ) over 5 years ago

Carol Ann...great post!  I had an offer in for a client on a house in Sharon this week.  A nice-enough, typical 1950's ranch.  Good bones, nice yard, but needed some updating, including a roof & had old fuses instead of circuit breakers. I priced it right at listing price - could have gone a little over but didn't think the value was there for more.  It got 9 offers, three of them were cash offers and the one they accepted was a cash offer for "significantly over" the asking price.  You can't beat that!  And of course, with cash, you're not tied into a time frame dictated by your lender.  

Posted by Christine Smith, Exclusive Buyer Agent & Attorney, Canton, MA (Buyers Brokers Only LLC - www.BuyersBrokersOnly.com) over 5 years ago

Sometimes the highest may not be the one that has the best chance of closing which can be quite risky if it is a distress sale.

Posted by Jim Holder, REALTOR EMERITUS, ABR,ePRO,CNC,SFR, (HomeSmart Connect) over 5 years ago

Hi Amanda and Jared.   It really is.

 

Hi Kate.  I have no trouble voicing that  to buyers as I was ridiculous enough (years before I became an agent ) to do that very thing.   I always regretted not having an agent in my corner at that time.    Two very good lessons.   :)

 

Hi Ginny.   Right on, and I do believe some take advantage of that fact.

 

Hi Barbara.   Terms and tone very important these days.

 

Hi Nina.   Totally agree.   When buyers need to think about it, they are likely to miss out.   Big change from a few years ago.

 

 

 

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

I have to admit that most listing agents do not use the multiple counter offer. I always prepare my buyer to make their highest and best offer. How bad do you want the home?

Posted by Harry F. D'Elia, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (Real Estate and Beyond, LLC) over 5 years ago

Carol Ann, I just had a multiple offer situation on a short sale listing and as both were cash, it was highest offer period, and all parties were notified of the situation with time to amend and present

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) over 5 years ago

Good post.  I have had many buyers get very upset when their multiple offer was never countered.  Sometimes the seller just likes one better.

Posted by Lisa Friedman, 29 Years of Real Estate Experience! (Great American Dream Realty) over 5 years ago

Carol Ann: Buyers and their agents who understand that a multiple offer situation requires the absolute best offer typically win out.  Good information!

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) over 5 years ago

Carol Ann, Congratulations on the feature!  We are getting a lot of multiple offers and I feel like Christmas sitting with a pile of offers and counseling the sellers!

Posted by Christine OShea (Christine E O'Shea Real Estate Broker) over 5 years ago

Carol-Ann - We're seeing a lot of multiple offers as well, and you've given good information on them.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) over 5 years ago

I wouldnt go back and ask for Highest and Best. I assume if a buyer is serious about buying, they will make their best offer first. If another offer stands out as superior to the rest, and best fits the sellers situations, sellers normally accept that offer, and possibly one of the other offers could become a back up. Jacking up price means nothing unless potential buyer provides proof he/she has funds on hand to contribute if appraisal comes in low.

Posted by Jeff Pearl, Full Service Full Time Realtor (RE/MAX Distinctive / LIC in VA) over 5 years ago

Hi Michael.  We love hot markets!

 

Hi Michael S.  Thank you.

 

Hi Wika.    Most times the Seller is looking for good guidance from us.

 

Hi Brenda.   Exactly right girlfriend!   A buyer might go high to nudge the others out, then rely on contingencies to get the price back down.   

 

Hi Keith.   Yep..  The best is not always the same with each seller.  

 

Hi Bob Gilbert.   Thanks. 

 

Hi Tammie.   Makes you want to scratch your head doesn't it?

 

 

 

 

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago
I like the way you put the big link at the bottom to follow up on the next subject!
Posted by Cheryl Ritchie, Southern Maryland 301-980-7566 (RE/MAX Leading Edge www.GoldenResults.com) over 5 years ago

Hi Graziella.   My experience too.

 

Hi Richie.   Yes, we definitely play an important role in filtering through and helping the seller decide.   It's not just about the $. 

 

Thanks Kathy!

 

Hi Mike.  Less hassle seems to win every time.  

 

Hi Frank.    You bring up a very interesting and very valid point.   Makes me think.  I would like to hear what others have to say too.    Thanks.

 

 

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago
I would love to reblog the one on your main website if you ever do a rendition here. Well done intro here to your main WP post.
Posted by Cheryl Ritchie, Southern Maryland 301-980-7566 (RE/MAX Leading Edge www.GoldenResults.com) over 5 years ago

Hi Jayne.  Wow!  That must be just crazy.  Good creative way to beat out the competition.   I will have to keep that in my mind.  

 

Hi Christine.   You know they are loving you.  Cash is king!

 

Hi Jim.   and, difficult for some to come to terms with.  

 

Hi Harry.   and how bad will you feel if you lose it!

 

Hi Ed.    Cash.  No contingencies.   Got to go for the gold.  :)  

 

Hi Lisa.    There ususally is hurt and sometimes angry folks. 

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Hi Anita.  Most do.   Experience the other day.  Some still not up to speed.   Thanks.

 

Hi Christine.  I am smiling at the visual.   Yes!

 

Hi Christine D.   Thanks.

 

Hi Jeff.   and some buyers get that.   Some agents do too... and there are still some out there that don't.  Thanks.

 

 

Hi Cheryl.  Thank you!!   I appreciate the compliment.     I typically post to both.   Winning at multiple offers.

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Excellent post Cal, good information for buyers in a multiple offer situation.  Congrats on the feature.

Posted by Al Raymondi, Ormond By The Sea Florida - Home and Condo Sales (Ocean View Realty Group in Ormond By The Sea Florida) over 5 years ago

In our market, multiple offers are the norm rather than the exception.  We have been on both sides.  Buyers need to know that cash is not always "king."

Posted by Pat & Steve Pribisko (Keller Williams Greater Cleveland West) over 5 years ago

Hi Cal, So what do you recommend doing when a buyer might be or is facing multiple offers on one home? 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) over 5 years ago

Hi Al.  Thanks for checking it out!

 

Hi Pat and Steve.    Multiple still not the norm level around here.   I can't imagine how frustrating that would be for all involved.  

 

Hi Bob.     I always say make the best possible offer financially that you can and eliminate as many of the contingencies that you can while still protecting your interests.    That way, no regrets.    What about you?

 

 

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

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