In hot markets, it is common for many buyers to take interest in the same property. The result is multiple or competing offers written and presented to the seller.
In a competition, a buyer should make their best offer, their first offer. It’s unlikely that they will get a second chance.
Buyers should ask their REALTORⓇ to confirm how many offers will be presented when the offers will be presented and if the listing REALTORⓇ is also representing a buyer with an offer.
A seller has no obligation to counter any offers. Those offers which are not accepted by the sellers should not accept more than a response indicating their offer was not the winning bid.
A full-price offer does not always guarantee a buyer will win a competition. The true value of a home is what someone is willing to pay. Many buyers will pay above the asking price to get the house that they want.
Sometimes offers are so similar that a seller may reject them all and asks buyers to resubmit their best and final for consideration, as a buyer you are under no obligation to do so and may leave your offer stand as written, adjust your offer for resubmission or rescind your offer altogether.
Hot markets can be a frustrating, confusing and stressful time for Buyers. Buyers must have their financing in place prior to writing an offer when competing or otherwise.
In certain situations, a listing REALTORⓇ will delay offers on a property for a few days in order to allow multiple potential buyers an opportunity to view. This can sometimes work in the seller’s favour as multiple offers are usually a benefit to the seller however if an interested buyer is told they must wait they may find another property in the interim or decide they are not willing to be a party to a multiple offer situation and the seller may never get an offer from that buyer party.
Multiple offers can not be prevented and are a component of a hot market. Buyers may hate the idea of a bidding war, worrying they will either get caught up in the competition and pay too much and opt not to take part in multiple offers altogether.
Regardless of your opinion, it is important you work with a professional REALTORⓇ with experience in how to handle the very stressful situation of multiple offers.
*** Tips for Buyers in multiple offers ***
1. Dollars and Deposits
Many people focus on the offer amount as the major decision-making factor. Although it's true that money talks there are other important aspects of the offer to consider, including the deposit amount.
Some sellers will see a large deposit as a stronger offer. It can give sellers comfort that the Buyer is serious and have monies to put down, reflecting that their financing may be stronger than other offers being considered.
The type, number and length of conditions placed on an offer can have a large impact on how an offer is received. Many times in multiple offers Buyers remove all conditions, this of course makes your offer very appealing but it is very important to discuss the ramifications of offering unconditional with your REALTORⓇ. If you choose to place conditions on your offer consider that have a shorter condition period may be more attractive to a Seller, many Sellers see their properties as being “tied up” once a conditional offer is accepted, the shorter that time frame is the more comfortable a seller is likely to be.
3. Dates & Timing
The closing date can play a big part as well. If a property is vacant, most of the time a sooner possession date would be more attractive to a Seller. Consider a scenario when a very long closing or very quick closing would be of more appeal to a seller than the dollars and cents, should those amounts in the offer all be relatively close. Some sellers may want cash and a quick closing, versus a bit higher dollar amount. Others may have reason to prefer a longer closing to put things in place with their next move or build.
When you are in a multiple-offer situation as a buyer, you might want to consider leaving out that extra item you were hoping the seller would throw into the deal. Chances are that your idea of the value of that item is much different than the seller’s perception and can be the reason your offer is not chosen.
Ensure your offer is written properly and professionally. A REALTORⓇ representing a buyer in multiple offers who is professional, who drafts an offer that is easy to read and done correctly and who communicates well can be the tipping point for a buyer to win in multiple offers.
The Viani Real Estate Group has years of experience and has dealt with multiple offer situations many times, contact us today to help you navigate this process.