As Good As SOLD

Real Estate Advice from the Experts!

December 30th, 2006

Record low interest rates are adding extra impetus to an already active real estate market. It’s been a bonanza for Sellers, but less so for Buyers as they’ve often found themselves in ‘multiple offer’ situations where they’ve had to compete for the limited number of properties available.

The whole question of multiple offers isn’t well understood, and consequently the public has lodged a significant number of complaints against Realtors of late as to the manner in which they have been handled. Let’s take a look at the issue from both sides — what happens when, as a Seller, you receive more than one offer on your property, or as a Buyer when you are on the other and less envious end of the stick and having to compete.

When representing you as a Seller, your Realtor’s job is to bring you not just an offer, but the best offer. Consequently, upon learning an offer is forthcoming on your property, he/she should contact everyone who has ever expressed an interest in it and invite them to compete. This might seem unfair to the first offeror, but a Realtor’s legal duty of loyalty to the principal — in this instance, the Seller — obliges him/her to do so as it is in the Seller’s best interest.

The offers will be presented to you by the Realtors acting for the potential Buyers in the order in which they were received. After each presentation the Realtor will be asked to wait outside until all offers have been put before you. After reviewing them with your Realtor you can decide whether you wish to accept any, or counter any. It’s important to know you are under no obligation to accept or counter any of them — although if one is full price or better and caries no conditions, it would be difficult not to.
If you find two offers appealing, you may wish to accept one and notify the second choice Realtor you would be prepared to accept a ‘back-up’ offer in the event the first collapses for any reason. It then becomes the standing offer should the first one fail.

It’s a double-edged sword however, and next time we’ll look at the same issue from the Buyer’s perspective.

Entry Filed under: Real Estate Matters, Selling a home