Dealing with multiple offers from three perspectives

There is a shortage of homes for sale so buyers need to “step it up” to get their offers accepted. Realtors must be sharp and sellers need to be ready. There may have never been such an important time to be represented by a Realtor as there is now.

The buyer’s perspective

The first step is choosing a Realtor you trust and signing an agreement that you will work with them, and they will represent you. Your Realtor can do a market analysis n the home you would like to buy to determine if it is priced accurately and to advise you about how much to offer. Beware of getting excited about a house and paying too much because of your emotions.

After making an offer on a house, you may not know there are other offers “on the table”. It’s the seller who decides whether or not you will be told. Your offer may be reviewed when it is delivered to the seller’s agent or the seller may elect to hold all offers until a certain day and time, and then review them all together. In either case, you are competing with other buyers for the house. Your offer may be accepted (yay!) or rejected (so sad), or countered. If it is countered, the seller is changing something about your offer, such as increasing the price you offered, changing the closing date or marking through personal property you’ve requested. Then, the ball is back in your court and you can accept or not accept, or counter the seller’s proposal.

If the seller asks for your “highest and best” offer, then think carefully about how high you’re willing to go. If you were willing to pay $250,000, for example, but you only offered $230,000, then you lose out. You may not ask how much the other offers are and the listing agent may not tell you. Your Realtor knows how to get your offer accepted and will explain eliminating contingencies, firming up your financial status or possibly increasing your earnest money deposit.

The seller’s perspective

What a joy for you when multiple offers are received. Listing Realtors may advise you about underpricing your home to start a bidding war. they may tell you to price your home at the top of the recommended range because of the high volume of activity in your area. Just remember, buyers rarely will pay more than the appraised value, so rely on your Realtor for advice.

Multiple offers give the seller an advantage. The seller may choose one of the offers to accept or counter. The seller also may decide to tell each buyer, “Give me your highest and best” offer. Once received, the seller will choose one offer, and it is much easier on the seller than countering back and forth with various offers. As a seller, you may choose whichever offer you like the best, depending on factors such as the amount paid, the closing date and the certainty of closing. Often, in today’s market, the buyer is paying more than the listing price.

Your Realtor is invaluable with guiding you through the decisions and negotiations. Your Realtor can explain to you that buyers may revoke their offer when confronted with competition. Preparing and pricing your home properly is the ley to getting multiple offers.

The Realtor’s perspective

This is when education and experience are needed. Creativity and aggressiveness can pay off. Most importantly, a Realtor needs to be patient and positive when dealing with buyers and sellers in today’s market. It is important for your Realtor to explain the processes, how important quick responses are and how to have an advantage in this very active real estate market.