My happiest moment as a Realtor is when I get to inform my buyers that their offer was accepted and their dream home is no longer just a dream. It’s the highest of highs that my job bestows upon me, but there is also the lowest of lows. Unfortunately, I also have to be the bearer of bad news when an offer is rejected due to competing offers. That’s what I want to talk about. It is so important for buyers to be informed in order to make the best decisions possible.
When sellers receive multiple offers, they do one of the following:
- Accept the best offer – This may not rely solely on the sale price. An offer can be more attractive to a buyer if the closing date suits their needs, has fewer/no contingencies, has solid financing, etc.
- Review and respond to all offers asking for the buyers to present a final offer with their highest sale price – A listing agent can inform the buyers’ agents that multiple offers were received. Instead of negotiating back and forth, the listing agent can request that all parties re-submit their best offer.
- Counter one offer while tabling the others – If negotiations fall through with the offer they countered, they still have back-ups.
- Counter one offer and reject the others.
A listing agent will not disclose the competing offer prices so the buyer has to determine how much the house is worth to them. Obviously this is the difficult part. In a multiple offer situation, I always advise my clients to write their highest and best offer. If the home sells for more, they have the peace of knowing it was not the home for them. Otherwise, they might be quite disappointed to lose out on a home that sold for a price they were willing to pay. In a market flooded with buyers, it’s wise to assume the seller will accept the best offer. So if this is a house you REALLY want, don’t count on negotiations to get you there. If this is a house you want, but only at a certain $ amount, then by all means let’s get to the negotiating table.
*The contents of this post are intended to convey general information only and not to provide legal advice or opinions.