Tips every buyer should know
For sellers, getting multiple offers on a house is a dream. But for buyers who have fallen in love with a particular property, hearing that their offer is one of many can be maddening. Having to compete with other buyers means your chances of getting the home will likely be harder.
So what happens when multiple offers come in—and, most importantly, what are the chances of your offer rising to the top?
It’s the seller’s move
When there are multiple offers on the table in a real estate transaction, the seller is in the driver’s seat.
“The seller can accept an offer outright, counter all offers, or choose to counter some of the offers and not others,” says Beverley Hourlier, a real estate agent with Hilltop Chateau Realty, in San Diego.
And price is not the only factor sellers weigh when they look at offers. The buyer’s terms and contingencies are also taken into account, as well as pre-approval letters, appraisal requirements, and the closing time the buyer is asking for.
“The seller really has most of the control here,” says Realtor® Joyce Mitchell with Mitchell & Associates Real Estate in Bigfork, MT.
When there are multiple offers, the seller typically takes one of three actions:
- Accepts the most favorable offer
- Counters all offers to give everyone a chance to come back with a better bid in an effort to get the best price and terms
- Counters the offer closest to the price and terms the seller’s seeking
How to make your offer stand out
- Best Foot Forward: In a multiple-offer situation, you generally don’t have the luxury of negotiating back and forth. Make your strongest offer upfront.
- Flexible Closing Date: Offering the seller the convenience of choosing the closing date can make your offer stand out.
- Escalation Clause: Consider including an escalation clause that automatically increases your offer to a certain limit should another higher offer come in.
- Waive or Reduce Contingencies: While risky, fewer contingencies make your offer more attractive to sellers. Just be sure you’re comfortable with the risks involved.
- Quick Response Time: Time is of the essence. Be ready to respond quickly to counteroffers or other changes in status.
Contact us
By applying these strategies, both buyers and sellers can navigate multiple offer situations more effectively, thereby increasing the chances of a satisfactory transaction for both parties.
Tucker Benner Realty real estate agents have experience with multiple offers. We can help you through this process. We may have a few more suggestions that may work in your situation. Call or text today 231-730-8781.
Marilyn Tucker
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