How to Deal With Multiple Offers When You Are A Buyer

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Help for the Buyer - Multiple Offers Without The Stomach Ache

I stay very busy working with buyers writing offers on short sales and bank owned properties in Destin, FL.  I like to seek out the best deals for my clients and this often leads to multiple offer situations.  This can be a very uncomfortable and stressfull situation for all agents and buyers involved.  The tips below will help any buyer in this situation.

1.  Do not make your offer based on the other offer.  For all you know the other offer could be ridiculously low and have contingencies all over it.  You will have no way of knowing the other offer unless the seller advises the listing agent to tell you.  Speculation will get you nowhere.

2.  Look at the comps and have your realtor provide you with a CMA "comparative market analysis".  Make your decision based on the comps and base your offer on this analysis.

3.  When you are told to submit your "Highest and Best Offer", submit your highest and best offer but understand that the bank or seller may ask for "Highest and Best" again.  I have had this happen a few times.

4.  Make your offer as clean as possible.  Do not include too many contingencies because you may lose out to a lower offer.

5.  I have seen foreclosures and short sales sell for over the asking price.  This happens all of the time.  Sometimes banks and agents price homes under market to create a bidding war. 

6.  The other agent is not lying about the other offer.  This would be a major violation and we cannot assume this.

Keep a cool head and make a good offer when there are multiple offers on the table.  Do not offer way too much and be careful with the low ball offers.

Clayton Bonjean, Broker, MBA, CDPE

www.mainsailrealtycompany.com