Real Estate Blog - MULTIPLE OFFERS - WHY WE MAKE THEM

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MULTIPLE OFFERS - WHY WE MAKE THEM - WHEN WE MAKE THEM.

MULTIPLE OFFERS - WHY WE MAKE THEM - WHEN WE MAKE THEM.

An interesting post by Ann Allen about making multiple offers inspired this article which is based on my experience. I've made multiple offers for home buyers for many years. However, they are not made without complete research and only for properties that the home buyers are satisfied that they will buy and complete the contract to settlement.

MULTIPLE OFFERS MAY HELP SERIOUS HOME BUYERS. When I help buyers make multiple offers they are not making comical low-ball offers. I don't spend my time working with those buyers. Buyers I represent are serious, well qualified and ready. They are either relocating and have a short time in the area to preview, select a few homes and we make multiple offers to narrow the choices.

I don't represent "bottom fishing" buyers. I represent serious residential buyers looking for a home. The reason to make multiple offers is to give these buyers an opportunity to buy "now" what they are seeing "now". Without multiple offers, we'd be limited to considering one property at a time and that's not what we need when we have just previewed, researched and considered 2-3-6 properties in a small amount of time. Home buyers

FROM 6 OFFERS TO 4 OFFERS TO . . . . . When we make the offers, all at the same time, we can quickly eliminate the sellers whose agents do not respond timely. Relocating home buyers can be disappointed by listing agents who ignore phone/fax/e-mail messages. When time is of the essence for relocating or local buyers with a need to move quickly (tax credit???), waiting for listing agent responses is a luxury we don't have.

SELECTING A HOME TO BUY IS A TIME CONSUMING PROCESS. I spend a lot of time researching properties for home buyers. The purchasers are very cooperative, responsive and serious. They want and usually need to buy NOW. The home buying process from preview, research, comparitive analysis, second or third preview for valuation/condition, loan pre-approval, preparation of contract and numerous addenda, presentment, and then wait for acceptance/counter is going to take time. Relocating home buyers don't always have the luxury of time.

MULTIPLE OFFERS MUST BE MADE RESPONSIBLY. Serious buyers are ready to buy now. Making one offer at a time, considering the time involved in getting the offer complete and going through the contact/negotiation process can often result in one or more homes for sale going under contract while we are negotiating on the buyer's first choice.

SUPPOSE ONE PROPERTY STANDS OUT ABOVE THE OTHERS? Go for it. However, make sure that the offer is complete. Leave no stone unturned to get the offer presented and if the listing agent or seller is not cooperative with timely communication, hope that the buyers will be ready to move on to another property.

MULTIPLE OFFERS - WHY WE MAKE THEM. We make them to give home buyers an opportunity to successfully complete a purchase and make good use of their home search time.

MULTIPLE OFFERS - WHEN WE MAKE THEM. We make them for serious home buyers who have a limited amount of time to reach a "ratified" status after considering several properties offered for sale.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

Multiple Offers

"Honey, this is one of my favorites of all the homes we saw. When do you think we'll hear?"

"No idea Dear, seems to me that 4 days is long enough. Let's hope the other one doesn't sell before we hear about this one."

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 10/25/2009 05:44 AM

Comments (78)

Multiple Offers in the Sales Strategies / Tactics Channel

multiple offers, buyer representation

Originally posted at: MD, VA Foreclosures, First Time Buyers Grants, CDA Loans MD, Rehab Loans MD & VA: MULTIPLE OFFERS - WHY WE MAKE THEM - WHEN WE MAKE THEM.

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78 Comments on MULTIPLE OFFERS - WHY WE MAKE THEM - WHEN WE MAKE THEM.

OCT

Lenn, very good post. Also, in the case of short sale (as Bryant Tutas has blogged) it's a good tactic to make multiple offers. The important key to keep in mind (at least under Florida real estate law) is to structure offers in such a way that the buyer does not end up under a binding contract for multiple homes.

Gabe. Multiple offers on Short Sales is not something I would recommend. Nor do I recommend the procedure for inexperienced agents. At no time are buyers at risk of multiple contracts. Mulitple offers should only be used by an agent that clearly understand every single paragraph and every addendum of a contract.

Lenn,

This is an interesting look at why someone would present multiple offers. Being in an area that we do not see this practice, I am thinking that the addendum would have to spell out time lines and when the contract is fully accepted, right?

Thank you ma'am for the reasoning.

Don. If you're not seeing this in your area, perhaps there is a local law against it. Or, is it an "urban legend that "you can't do that"???

Hi Lenn! Interesting! I read Ann's blog and commented that I wish you would explain! We don't have the option to note that multiple offers are being presented on our contracts so, I skirt the issue by giving the sellers a short deadline for a response--then move to the next one if we don't feel that we're going to move close enough to get the price. Thanks for the explanation!

We too use a form of this, not exposing our buyers to a problem here in Florida. It sounds like what Debe is doing. Writing A, B and C. Short time frame for A and on to the next one and so on and so forth.

Lenn,

It is more of an urban legend. I could see it being done if it was done right especially when it comes to relocation buyers. I would want to have knowledge of what I was doing, and EXPECT the agent on the other side to be working with the same knowledge. If not it could get a little bit hairy.

Just one question, is their a place on your contracts that let the listing agent know this is a multiple offer?

I'm in a situation now where I am putting together multiple offers for a family who is relocating to the area from overseas. We have slow responses from agents and in some cases am about to make a "blind" offer as the agents only work from 9:30 to 5:30 M-F and another one who's phone is temporarly out of service. It is maddening and not the way I would prefer to do business but feel I'm forced to by our current market.

"Buyers I represent are serious, well qualified and ready."

I am amazed at the number of agents who ignore this very simple concept! Thanks to for another way to look at the multiple offers situation, It certainly taught me something I had not considered, Thanks!

Lenn, You'll certainly get no argument from me on this. I'm working with a buyer right now. We made 5 offers yesterday and we are making 5 more today. Hopefully he'll end up with a home out of it. Almost forgot....we haven't seen the properties either. We'll do that later.

Russel. This is also a matter of Broker Policies and Procedures. Some brokers do not permit their agents to work multiple offers. Their apprehension is understandable.

Cindy. Your area is very competitive in some price ranges. With relocating buyers who need a home, multiple offers simply level the playing field a small bit.

Don. There is no mention of multiple offers on the Contract for buyers OR SELLERS. Listing agents routinely ignore the MLS rules re: status. The NRA COE addresses this issue when a buyer's agent ASKS about other offers and if any are with the listing office.

Clearly, if a listing agent asks, we would say, yes, we have made more than one offer.

Bryant. I suspect that you handle the contract as I hope I do. Play it like a Stradivarius.

Dick and Dixie. That can work too, but sometimes every 24 hours makes a big difference.

Debe. Multiple offers is not an "option". Unless restricted by license law, it's a right. Is the seller limited to one offer????

Lenn,

Love your advice: Go for it. However, make sure that the offer is complete. Often, that's not the case, IMHO.

Mike in Tucson

Mike. Our offers are always complete. If they weren't, I wouldn't expect a listing agent to present it.

As always, interesting content. Offers on multiple properties are not common in our area. This could work fine, if your buyer gets several counter offers. In the unlikely event they get acceptance of their offer as written, it could get quite uncomfortable to have to respond that you are waiting for an answer on several others. This could complicate negotiations later in the deal.

Very well said.

Before I was a Realtor my family moved to Florida, we had 1 day to find a house, ours in Illinois was under contract, and so contracts were written with "A response required by time of day". We had 4 homes with contracts in and not one of them got back to us in time.

By Sunday we were back out on the road looking, not the plan, found a house, called the agent and he came over to collect the contract, now that was service. By the time we got back to our agents office to collect our cases to leave, we had a deal.

I hated Florida so we came back!

It seems like there may be a lot of room for complications with multiple offers. What happens if two sellers accept the buyer's offers quickly and at the same time? You may have an addendum in your area that addresses this - I haven't seen one for my area.

Years ago I made an offer on a home in northern VA in the height of the real estate market. I was one of 5 offers. I did not get the deal (Thank God!) What was most interesting is that a very big agent took both sides of the deal. He talked the seller into taking a contingency deal (So I assume he could double dip!) he turned down 4 other offers, and when I saw the deal close...it was sold to a different party after the contingency fell out. and netted the seller some 60K less. This was before the market corrected, and when prices were still going up.

Double dipping in the scenario may be very counterproductive to the sellers net if the listing agent does not present the offers correctly in the sellers best interests.

Featured @ Club Chaos

I have a question, do you disclose on the offers that you are making multiple offers?

I am so glad you wrote this! I have always asked why people work so hard to get just one home - especially when there are many properties available. Question - do you let the listing agent or seller know you are making offers on multiple properties? I mean how many times have you made an offer and the agent/seller says, "We have a lot of offers to consider"?

I've only used this a couple of times(Relo clients),but it worked out real well for those clients. We basically put the Seller's(and their agent) on notice that" the Buyers loved your home, but need an answer quickly or they'll be forced to pursue house # 2 !!!!"They wanna know they've found a new home before they leave town !

Had this happen on one of my listings. Thing is that my seller had accepted their offer and, as we were preparing to move forward, the buyers received acceptance on another offer they had placed simultaneously with ours so they walked away from ours. My seller was pretty upset.

Up till that experience, I had never seen that happen in our area although, in hindsight, it may have and I just may not have been aware that it had. Given how long it takes some sellers, primarily banks and non-responsive listing agents, to respond I'm thinking that this concept may take hold here...disclosed or not.

In addition, when using this tactic, if the buyer's agent or offer contract does disclose that they have made or are making multiple offers....and then one of those offers winds up in a multiple offer scenario on a specific property, couldn't that weaken the buyers' chance of being considered as "serious"?

Although I've never done "multiple offers" myself, your article has prompted me to initiate a discussion of this strategy with my Broker. Thanks!

Lenn - We don't have the Multiple Offer protocol here in our area, and we don't have an Escalation Clause either. I do hope to introduce the Escalation Clause when I join the Board of the Sierra Nevada Association of Realtors next month - it would be a very helpful tool. If they can 'get' that one, then we'll see if they can handle the Multiple Offer protocol! Baby steps...

In California, the final paragraph of our eight page offer states:

31. EXPIRATION OF THE OFFER: This offer shall be deemed revoked and the deposit shall be returned unless the offer is signed by Seller and a Copy of the Signed offer is personally received by Buyer, or by ____________________________________, who is authorized to receive it by 5:00 PM on the third day after this offer is signed by Buyer (or, if checked ( ) by ___________________________ (date), at _____________(am) (pm).

Date: _______________

Buyer: ___________________________________ Buyer: _______________________________________

The key to ratification of this contract is when the Acceptance touches the buyer. The first blank line of for someone (agent?) to receive acceptance on behalf of the buyer. I rarely, if ever, place my name in this line. We want to control the moment of "Ratification" - and that is the key to multiple offers.

Sacramento County is awash is multiple offers. It would be a difficult choice to avoid doing them and consider yourself to be truly serving the interest of your buyer.

Multiple offers are a fact of life in Bakersfield, California. Most of our inventory is REO or shortsales. In most cases it takes at least a week to get a response on an REO listing. And shortsales of course take even longer. The difficult thing about multiple offers is that most buyers want to feel that they are buying their perfect dream home. How can that be if we have two or more offers out at the same time? Every time I write up an offer I spend a fair amount of time talking with my buyers about our current market and about how our current situation fits in with their goals and desires.

Agents in our area say there are no multiple offers in this market. But a few weeks ago we had 2 come in the same day on a hot property. Thankfully we keep up with the laws. Great post to remind us all to work for the clients best interests.

Personally, I don't do it. For several reasons. First, our lawyer advises against it because it breaks a covenent of contract law in California. Second, it's often a waste of time to throw crap at the wall. I find ways to get in touch with the listing agent. When I write an offer, I have a fairly good reason to believe it stands a chance in the sea of competition, and I routinely win multiple offer situations by writing the winning offer.

Lenn, As always, a great post!

Lenn, thank you so much for writing about this! It is a subject that we will be discussing in our next team meeting. I appreciate your insights and dedication to serving your clients.

Lenn: I have done this with serious buyers myself, especially in the market as it is now. There are so many competing for the same properties. You almost need to write multiple offers to get the job done.

Hi Lenn ~ This is not something that is common practice in Iowa. I know it's a subject that has come up before on AR and contacted an Attorney at the Iowa Association of Realtor to ask whether this was a tool I could be using for my buyers. His short answer was no. He cited legal issues about an offer being in "good faith." (Every offer). He also talked about honesty to all parties in a transaction, which would mean an ethics violation if it wasn't disclosed. That of course knocked this idea on the head for me here in Iowa.

You are an extremely experienced Realtor and I'm glad you point out that inexperienced Realtors should stay away from this practice. There are too many ways it can go wrong. It's not "whats good for the goose is good for the gander." This is not at all the same as sellers getting multiple offers on home. In that scenario all parties know what is going on in the transaction from the get go.

This scenario is much more complicated. Although I may not have this tool, I do have other options. Slow response times are not generally a problem in the Iowa City market and if circumstances require it I can tighten up the response time to allow for several offers to be made in a day, creating a kind of domino effect.

Denise

I am never really comfortable doing this, however, in New Jersey, there is nothing illegal about proceeding this way...particularly for someone who "as" to move to the area for relocation.

Hi Lenn,

This is not something I encourage, but I have made multiple offers for clients upon request.

This is perfectly legal in New Jersey. If a buyer receives two acceptances from two sellers, he can just withdraw one of the offers. A fully executed contract is not binding until the end of a three-day attorney review period. The buyer's agent and attorney will be on top of this and only allow one contract to survive attorney review.

Lenn, you certainly describe well the ideal way to handle multiple offers for a reasonable buyer. I do find that not all agents are equally well versed in how to do this and sometimes a lack of agent experience can make a buyer appear to be unreasonable or manipulative when if fact they are not.

A great listing agent will not counsel a seller to be offended and outright reject an offer if there is any possibility that the agent is the one who is inexperienced. A strategic counter can be crafted quickly and a great listing agent can offer her sellers another opportunity to assess the real position of the buyer!

Lenn

When inventories are low, competition is high, buyers are anxious and on a tight deadline....we have no choice.

However, there are limits. For example, we didn't bother writing an offer on a listing that already received 98 offers.

We wrote an offer on a property in July, but we kept on looking and writing offers on other properties. That July property went into contract, in July, and we were in back up position.When first buyer backed out mid-October , we moved into first. By that time, the short sale approval was already received, so we don't have to wait much longer.

For our clients' benefit, we just need to keep track of which properties we wrote offers on, and try to be in back up. One never knows!

Lenn:

I did multiple offers a few times in Boston when times were crazy, and do them here as well...but carefully. As Cathy (from CA) points out above, we have some measure of control on when the offer is actually ratified via the clause on the final page of our offer. With the way our low end market is acting, writing multiple offers with serious buyers is necessary in order to do our job for them.

I also wonder about disclosing to the sellers that you are making offers on more than one house. Some sellers may then assume the buyer is not all that serious. Although it is certainly common to be told that the seller has multiple offers to consider.

Jeff

Great post.

Thanks for sharing. We are seeing many of those multiple offers here in Ottawa because of low inventory.

Hi Lenn -- remember those old bumpers stickers: "Judges do it on the bench" (and the like)

Now I've got one Lenn inspired bumper sticker: Realtors have multiple offers!

My theory has always been that if sellers can receive multiple offers, then buyers can make mulitple offers. Their intent is to buy a property. Nuff said.

Nice post Lenn as always! I always enjoy reading your thoughts. I love that you know who your client is. You're so on purpose. It's inspiring. Keep up the great work! ~Nyssa

Thanks for the post. I just did this with a buyer of mine and it was an ideal situation and worked out in the end.

Hi Lenn - I hope you can explain the logic on how this works in detail. I can understand making multiple offers on short sales and REOs (as there are counters and addendums), but to do it on retail listings, I can't see how it is done.

For example, I make 3 offers at the same time, all offerring 100k. If offer one counters 110k, then I am off the hook. However, if offer 2 and 3 accept my offer on face value with no counter, then I have entered into contract with two properties. I will then have to use one of my contingencies to back out.

Thanks in Advance

I don't writemultiple offers for my sellers, ever. If they are in a hurry to purchase, we just allow for a very short time-line for acceptance. As several people pointed out, if two sellers accepted, then my clients would be committed to two contracts, and I certainly don't want to be responsible for that.

Obviously the contract is written differently where you are from. I'd love to hear how it is worded, for future reference.

Lenn, I had a SS listing that received multiple offers. Everything was laid right out for the buyer's agent. Pre-approval letter, taxes pro-rated, etc.

The offers were narrowed down to two. We came back asking for highest and best offer. I sent it in an email and a fax. The one Agent said that they would "stay for now" and I told her, there wouldn't be another counter that this was a final and only one counter. She called me to ask me why there wouldn't be another highest and best after she lost the contract for her client!

Technically here we need to disclose if either the buyer or seller is making multiple offers. With that said with the high number of reo's and the absolute lack of buyers agents getting answers back from 3 to 8 days or more from banks, I know many agents are writing multiple offers. If they don't there buyers will lose out. Our counsel says - disclose. But I know that isn't being done. What some listing agents are doing is asking the buyers agents how many offers is the buyer making at one time. I'm sure you see the picture here. If they say yes, they are making multiples , then agents go onto the other 5 or 10+ offers they have on the the home. And this isn't an exaggeration - this is what we have with the lower end market day in and day out.

What a thoughtful blog post! Thank you very much; I appreciate it.

I have used this to perfection before. We offered on 2 properties, 1 got serious quickly while the other one dinked around. The agent who does a lot of business thought what I was doing was illegal. Time for someone to take her ABR.

Millie. There's no waiting involved. We work on our own tight schedule and as soon as we get counter or acceptance, I have pre-prepared withdrawals to send to the sellers that didn't respond timely. That's one of the advantages of multiple offers. We're not left dangling waiting for slow responses.

Corinne. Slow responses to good offers cost sellers. They just don't know it.

Brian. Not to worry. I protect the buyers.

Jim. I figure that if a seller can be that uninformed and naive, he deserves what he gets.

C. Thanks.

Joe. No. There is no requirement to do so. If an agent asks, I would say yes.

Ken. I do not disclose a multiple offer. No need to. No requirement to do so. If asked I would say yes with no details. If sellers can get multiple offers, buyer's can make them.

Michael. Good for you. If an agent knows how to handle these things, it works just fine.

Farida. Multiple offers are for experienced agents who know their contract very well. When we have a buyer with a short time frame, there is no time to lose. This works for me.

Christianne. IMO, with a broker's approval, any agent can use an escalation clause. Have an attorney write it to protect yourself and use it. It doesn't have to be board approved although ours is. I used elcalation clauses for 10 years before our board got around to including one. Maryland had one first and I used the format for Virginia until Virginia offered one.

You don't need any board approval or form for multiple offers. I would suggest that your broker approve.

Cathy. You are absolutely spot on. The form you have below is a "drop dead" clause. I don't use them routinely, but it could work.

Robert. All that you say is true. Multiple offers are not for everyone and every circumstance. However, it's rare when I have a relocating home buyer who finds a "perfect home". They can usually find several homes that they would buy. Further, when time is of the essence, buyers will rank the homes 1, 2, etc. I can take it from there.

Linda. Working in our client's best interest is the essence of what we do.

Elizebeth. I'm fortunate that my offers are often accepted too, even when it's not the high price. That's experience and knowing reading motivations.

Joyce and Terry. Thanks.

Ann. My pleasure. Good luck with your plan.

Chris. I agree. I know your market and the broker that I refer to there writes multiple offers too.

Denise. It appears that you have a thoughtful handle on the concept. None of our offers would violate license law or contract law. That attorney probably doesn't understand that, while we're making multiple offers, each one stands on it's own and each is made in good faith.

Penny. Nothing illegal about anywhere to my knowledge. Buyers have rights too.

Lynn. There you go. It's just another arrow in our quiver.

SarahGray. You are smarter than the average bear. With experience, we can do a lot more than just make an offer. Depends on our buyer's needs.

Pacita. You are right. An agent has to stay on top of every contract every step of the way.

Jeff. It is in the average listing agent's DNA to advise a buyer's agent that "we have other offers coming in". They say it in their sleep. No, we don't disclose that a contract is one of two or more. No need to. The listing agents should know the inventory just as we do.

Sham. Thanks.

Roch. Interesting. Good luck.

Carla. Funny. Nuff said indeed.

Nyssa. Thanks. I appreciate it. You are right. I do know my buyers.

Jushua. Wonderful. Good for you.

Satar. Individual areas have different form requirements. I wouldn't want to advise on specifics out of my area.

Stephanie. How I make multiple offers is, in a way, a trade secret and I wouldn't want to go into detail, especially with folks out of my area.

Barb. Interesting. However, this post is about multiple offers from a buyer for several properties for sale.

Anna. We do what we have to do to serve our buyers needs. I'm surprised to hear that multiple offers by a buyer must be disclosed. How can they justify that??? Sellers don't have to disclose unless asked and that's COE, not license law.

Aaron. What a thoughtful comment. I appreciate it.

Michael. Some agents have a habit of saying others are acting illegally when they get bested. They can't or won't accept responsibility.

I'm dealing with that issue right now. . we had several offer for an REO listing and a regular future homeowner do not have a chance with these properties. . there are a lot of investors with cash out there.

Fernando. HA! Any buyer's agent can tell you that.

Hi Lenn, Your criteria for " why " and " when " to make multiple offers makes great sense and focuses on meeting the objectives of the buyer. Well done !

Bill G. Thanks. It works.

An offer being accepted AS IS is rare enough to outweigh any risk of multiple offers being accepted. You'd have to draft an offer with zero contingencies and hang your buyer out to dry in order to increase the odds of as is acceptance happening. Obviously, with multiple offers being presented, you'd bank a contingency for buyer protection.

****Wait a minute, sellers don't have to disclose multiple offers under the COE, do they? If my seller tells me that they don't want me to disclose multiple offers, by law OBEDIENCE as part of fiduciary duty trumps the COE.

Right? If I am wrong, point me in the right direction.

Amanda. You are on the straight and narrow. The COE clearly says, "if asked". . . . . .

As a "newbie" compared to you Lenn (licensed since Dec. 07), I have never submitted multiple offers for a buyer...except once for my investor client who bought 2 properties within a week of each other! Cash! That was fun!! :O) Wonderful advice for assisting those who need to find something quickly!!

Lenn,

Thanks for the post. We have an option period in Texas that limits the amount of risk for

multiple offers if written correctly by the buyer's agent.

Multiple offers are GREAT for the sellers. Sometimes not very good for the buyer, unless you have the better offer. Like Roch said, the inventory here in Ottawa is low and we are seeing more and more multiple offers. I listed a nice house on Wedneday, we had over 20 visits plus 10 couples at our open house today. I am looking forward to presenting 4 or more offers tomorrow evening. Great post! Thank you

Jean Richer
Ottawa, ON

Lenn, Until reading Ann's post, I had never even heard of buyers making multiple offers. I, like you, work with many Relo buyers. They are on a tight schedule and MUST buy in 3 or 4 days. Most local agents here realize the majority of our buyers are from out of the area, and they still allow their sellers to drag their feet. It's ridiculous. I'm thinking this could work for us. I will certainly have to dot my i's and cross my t's first. Now, you've got me thinking! Never thought about it being in the policy and procedure manual either. Thanks for the great tips.

Hi Lenn. Good post though I do ever submit multiple offers for a buyer. In Florida it can be very problematic for me. ~ Lana

Very interesting. Have had a couple of buyers making multiple offers on REO's and other distressed situations, but never on those not in trouble. Sounds like a good plan when you have people relocating!

Lenn, offers around here appear on non-standard forms, not scratch, exactly, but on stationary sometimes- really. "Binders" are anything but, and treated as such. A buyer should tie up what they can (because it isn't, other than the potential of an agreement) with disclosure (if asked)- it's a narrowing down process, and sellers should understand as much (as buyers learned, in not so distant memory). Cyclical just is. While not standard procedure (at least for me in the past) this market isn't quite like anything in my past- too much in the way of opportunity for buyers.

I see a couple of my colleagues from Ottawa have commented, pointing out that we have low inventory and face multiple offers presented to Sellers quite regularly. I think they took a cursory read of your post. We do NOT see the practice of submitting multiple offers for Buyers in our area - at least not with any regularity. I have not seen this in the past five years. Doesn't mean it doesn't happen, of course, but it is certainly not common. From reading the comments here I can see it in REO or short-sale cases where there is lengthy institutional process involved - but many comments here talk about Agents taking a long time to respond to offers. THAT does not happen here as it is illegal. Two years ago what was our code of ethics was modified and passed as a regulation into law. There are regulations stipulating that Offers must be presented virtually immediately and that an Agent who is not available MUST make alternate arrangements for Offer presentation to Sellers. Our contract law protocol always includes irrevocable times on offers that are rarely longer than 24 hours and often as short as 4 - or even less. We also have low inventory so we often have a heck of a time finding ONE house to make an offer on let alone multiple. But the protcol and the professionalism mandated in response to Offers is something I can now appreciate even more after reading what some of you go through. Agents ignoring offers? Thank heaven they'd lose their licenses here.

The mulitiple offer reason for limited time is what I've had to do with military relocating here but wanting to buy a home in a price range where short sales are abundant. Putting in multiple offers has allowed them to try and hopefully land an accepted contract by time they get here :)

Multiple offers are becoming difficult to avoid with so little inventory and homes moving so quickly. It's just important to add the right language to the contract.

OCT

Charistine. Multiple offers give some buyers a better chance if they have limited chance.

Sally. Smart thinking. Good for you.

Bruce. You wrote:

There are regulations stipulating that Offers must be presented virtually immediately and that an Agent who is not available MUST make alternate arrangements for Offer presentation to Sellers. Our contract law protocol always includes irrevocable times on offers that are rarely longer than 24 hours and often as short as 4 - or even less.

Congratulations to you and your law makers for taking a positive step toward managing the continuing problem of poor responses to offers, counter offers. Clearly, if agents had these mandates, there would be no need for multiple offers.

Laurie. I understand that things are different in your area. Multiple offers are not as risky in your area where the original "offer" isn't really binding anyway. In my area, once the offer is made, if the seller accepts as written, the earnest money check must be deposited.

Emily. Exactly. That's primarily when we use them, although I've used them for local buyers under certain circumstances.

Lana. I know Florida agents/brokers who use them routinely.

Elizabeth. Sounds like a plan. Just be careful that you know every single line of your contract and manage the offers like a mother hen. When we have a relo buyer anxious to get under contract before going home, we clear our calendar and stick with it until we have a contract.

Jean R. Thanks. Good luck. You've got a good handle on things.

Brenda. We don't have an option period but multiple offers can be handled.

Sonja. HA! Investor buyers often insist on multiple offers. Fine with me, although we rarely represent investment buyers.

Lenn,

Your post is timely. In Toronto right now, just about every "good property" will have multiple offers.

That's not true in the suburbs, but in the City proper, just about every transaction will be a multiple offer situation.

Brian

Lenn, great post! I think you just inspired my next blog.....I will send it to you when it is done! Thanks!

I've never heard of anyone doing this before. I guess in my area it's not commonplace for this to happen. I can see the motivation in the MD area for something of this nature to be more prominent.

David. It all depends on the market and the availability of inventory and needs of the buyer.

Damon. Got it. Thanks for the link.

Brian. Keep on your toes. Multiple offers can be a challenge.

Here in London, I had 3 new listings last week and all had multiple offers on them and all sold for above asking price. I have been on both sides of the table, I prefer the selling side!

Great post as always, Multiple offers should prove effective in an industry where time is evasive and costly. I think it is best to only deal with serious clients, because time is so limited. Thank you!

Ty. So do I. Any day. Any year.

Monique. I only deal with serious buyers. Anything less is just for experience, which is why newer agents need to get out and show homes.

OCT

Lenn,
How do you handle it when you receive two accepted offers back from the multiple offers sent? In MD & VA how will a judge interpret the intent of the purchaser who has two offers accepted? In Texas the purchaser can pay for an unrestricted right to terminate the contract. So if two offers are accepted before the agent can send a withdrawal of offer the termination option can be exercised.

OCT

Ross. Experienced agents who know and understand the many clauses and addenda of a contract know how to protect their buyers.

In 25 years of making multiple offers, this has never been a problem. We know what we're doing.

Lenn, it is not difficult to write a complete offer which will work except for a few items that will most assuredly produce a counter. I am glad you know what you are doing.

Ross. Actually, it's the lack of due diligence on the part of the listing agents that open the door to multiple offers.

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