As Good As SOLD

Multiple offers – friend or foe?

April 13th, 2007

It depends on what hat you’re wearing. Last time we looked at what’s involved from a Seller’s point of view; now let’s explore it from the other and perhaps more contentious perspective, that of the Buyer.

As a Buyer in today’s active and inventory-starved market, it’s entirely possible you will find your offer is one of several, even if yours was written first. Keep in mind the Realtor working in the Seller’s interest is duty bound to alert any and all prospective Buyers that an offer is forthcoming. It’s part of the Listing Realtor’s obligation to his or her principal.

So what can a Buyer do to help improve his/her chances? Consider making your first offer your best one, holding little or nothing in reserve. It should carry your best price as you likely won’t get another chance to improve it. Remember, other offerers will know they are competing as well. And make your offer as clean as possible. The fewer the terms and conditions you include, the more attractive it will be to the Seller.

And this I beg of you on bended knee — HAVE YOUR FINANCING IN PLACE . This is crucial. If a Seller has any reason to believe your offer may fail when you present yourself to the bank the next day you’ll likely lose, even if your offer carries the highest price. Shop for the money first, then the property. It’s the single best thing you can do to ensure your buying success in any market.

And be aware a Seller is under no obligation to counter your offer or to respond to it in any way. Yours may have been the first one written, but the Seller has the right to consider all others prior to responding to any of them – if at all.

Remember too, that if the Seller counters your offer it is at risk until you accept the counter. In the meantime, there is the possibility the Seller could rescind the counter to you and accept another before you have responded. With this in mind, you may want to accompany your Realtor and be on hand should some quick decisions need to be made.

If your offer is unsuccessful you may want to make a ‘back-up’ offer which, if accepted, would come into effect should the accepted offer fail for any reason.

Entry Filed under: Real Estate Matters