Multiple Offers

If a property is unique, in great condition, is in the perfect location and the right price, it will get many showings as soon as it hits the market. Buyers are bored with stale listings and are salivating for the next new home, hoping it's the perfect one for them.

If more than one buyer finds the house perfect, and they both (or more than two parties) put in offers, they find themselves in a multiple offer situation. What should you do if you are facing this?

Every situation is slightly different. Rely on your REALTOR to guide you. Generally speaking, you will need to "pull out the stops" as best you can, keeping to your comfort level. Put in as few contingencies as you feel comfortable -- most sellers expect a property inspection and I do not recommend removing that contingency. Unless you are paying cash, you have to have a finance contingency. But how can you streamline your offer? Again, rely on the guidance of your agent. They have been in this situation before.

The most important aspect of a multiple offer is price, although terms and conditions of the sale are important also. The seller wants to see what his bottom line will be. They will also check to see if you have to sell a home in order to buy. A seller might take a lower offer if the buyer does not have to sell first. You never know.

Sometimes in a multiple offer situation the one that gets the contract will offer over the asking price -- yes, even in a buyers' market, this is happening. If you want the home, don't let a couple of thousand dollars cause you to lose the house of your dreams!

Recently we were representing buyers in a multiple offer. They knew there were three offers but they would not give the asking price because they were sure none of the offers would be full price. I told them I was 99.9% sure there would be one full price and that possibly someone would go over the price. They lost the contract. The house came back on the market following a faulty inspection that couldn't be resolved. Again, a multiple offer situation and again, I could not talk them into going full price. They lost it again. Lesson learned.

Your REALTOR has been through multiple offers and can guide you. It is always your choice what you offer, but be sure you feel 100% content with your offer -- whether you give full asking price, more or less, this is your decision -- just make it an informed one.