After a few multiple-offer nightmares this summer, I've come to realize that many buyers in our local market do not understand how this scenario works - as we've always had an abunance of homes avaiable for sale. However, with lower inventories and interest rates, our recent "Seller's Market" may mean that you too are more likely to experience a multiple offer situation on your next purchase, and hopefully this basic Q&A will help you be better prepared.
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 confident 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 fi rming up your fi nancing (or paying cash) and offering fl exibility 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 notification to the seller revoking your offer before they’ve accepted it.
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