Question:How would you handle a multiple offer situation?
Welcome to the seller’s market! Going once…twice…SOLD!
Multiple offer situations are the gift of the seller’s market. A gift for the sellers, that is. Although, sometimes a multiple offers situation can turn against the seller. Let me explain.
There are no clear guidelines for multiple offer situations. They can be handled pretty much anyway the seller wants. That said, I am a firm believer in putting good “real estate mojo” out there so you will get it back. My job is to protect the best interest of my selling clients, and sometimes a bidding war to the “highest and best” is not in their best interest. Even when a buyer emerges the winner of a bidding war, the emotional roller coaster can end on a down note. Often, buyers will experience buyer’s remorse or will have an expectation that since they paid top market value for a home it better be in top market condition. Therefore, the inspection process could be a little painful for the sellers. Or in the case of buyer’s remorse, the buyer might back out after discovering the true condition of the home.
So how should you handle these situations? If there is one thing that I have learned as I have gotten older, it is that “should” questions are tricky to answer. But if you are asking, I will share my thoughts.
My coaching to sellers, in all situations, really, is to handle the situation how you would like it to be handled if the roles were reversed. So if the seller were the buyer, how would they like to be treated. Recently, I had a situation where my sellers received three offers their first day on the market. All three offers were very close in offering price. One offer, however, went slightly over asking price. Additionally, they provided strong financing and a letter explaining their passion for the home. Now my sellers could have gone to all three offers and asked them to give them their highest and best to squeeze a little more out of the buyers. Instead they considered all three, and accepted the offer that went slightly over asking price because they had already exceeded the market’s expectation for a sales price. That is what I call good “real estate mojo.”
I would be remiss in my responsibilities as a Realtor if I did not speak to the buyers out there. Please consider that your first effort in a multiple offer situation may be your “one and only” opportunity. If you are passionate about the home in question, don’t hold back! There is nothing worse than losing out and knowing that you could have done better on your offer.
Conversely, even if you are the buyer with the winning bid, you are not the only bidder with a passion for the property. There could be back-up offers waiting in the wings if you change your mind or simply to be used as leverage by the seller during inspection negotiations. Sometimes just winning the bid has to prize enough!