Questions to Consider in a Seller’s Market: Multiple Offers
When home buyers outnumber sellers, the result can be a multiple offer scenario. If you’re searching for homes in a competitive market environment, you’ll want to take time to understand the dynamics of multiple offers and understand how this might impact your negotiating strategy.
Some questions to discuss with your buyer’s representative:
- Will I know if I’m in a multiple offer situation? Not necessarily. Typically it works to a seller’s advantage if buyers are told they are competing with one another. But a seller must give their agent permission to disclose the existence of other offers before this can be shared with your buyer’s rep.
- How will offers be presented to the seller? The seller decides how they want this handled, either individually or as a group presentation. Once presented, a seller can elect to accept (or counter) one offer, reject all offers, or reject all offers in conjunction with a request to resubmit a “highest and best” offer.
- Will the details of my offer be kept conﬁ dential from other buyers? The only way to preserve conﬁ dentiality is to ask the sellers to sign a conﬁ dentiality agreement before presenting your offer (which also applies to their agent). However, if the seller decides to have a group presentation of offers, you’ll either have to withdraw your offer or revoke the conﬁ dentiality agreement.
- If my offer has the highest price, can I be conﬁ dent that I’ll beat out other buyers? No. Sellers can accept whichever offer they consider “best” and that may be based on other factors, like the certainty of closing (e.g., the buyer is already approved on their mortgage) or ﬂ exibility on closing dates.
- What are my options for writing a stronger offer? In addition to ﬁrming up your ﬁnancing (or paying cash) and offering ﬂexibility on timing, there are a number of other things you can do, including eliminating contingencies, increasing your earnest money deposit or paying closing costs, to name a few. Discuss your options with your buyer’s rep.
- If I don’t want to compete with other buyers, can I withdraw my offer? Yes, as long as you deliver notiﬁ cation to the seller revoking your offer before they've accepted it.Every home buyer beneﬁ ts from having their interests represented in a real estate transaction, but in a multiple offer scenario, you’ll gain even more if you’re working with an Accredited Buyer’s Representative. Discuss these and other questions with your buyer’s rep so you can anticipate each step in the negotiation process and improve the likelihood of a successful outcome.
Every home buyer beneﬁts from having their interests represented in a real estate transaction, but in a multiple offer scenario, you’ll gain even more if you’re working with an Accredited Buyer’s Representative. Discuss these and other questions with your buyer’s rep so you can anticipate each step in the negotiation process and improve the likelihood of a successful outcome.
Source: Real Estate Buyer’s Agent Council (REBAC)
This post has been authored by Eric Slifkin, REALTOR® and Accredited Buyer’s Representative* serving Florida’s Treasure Coast. You can reach me at 888-288-1765, or visit my Website.
As your resource for information on new or resale homes throughout the Treasure Coast, please be sure to contact me about any home you may find on the Web, yard sign or ad. I will research the property, arrange showings and handle all the details.