Multiple Offer Situations

Multiple Offer Situations

The Real Estate Market is slow and values are down. I think most would say that this is a Buyer's Market. As a buyer, you might feel powerful and think you hold all the cards. But the truth is, we are seeing a lot of competition among buyers which results in Multiple Offer Situations.

In my 10 years as a real estate agent, I've seen MANY bank owned foreclosure or REO (Real Estate Owned) properties come on the market at such a competitive price that there were several buyers hoping to be THE buyer. It doesn't usually matter if you were the first one to make an offer or the tenth one, your offer will be give equal consideration.


What should you expect?

Most of the banks we work with, when faced with multiple offers, will ask for "Highest and Best" from all interested parties. This is exactly what it sounds like, give your highest and best offer. Keep in mind, if you ask the seller to pay for your closing costs, inspections or any other typical buyer expense, this cuts into their net proceeds and will likely have an affect on the acceptability of your offer.

Some buyers want a house so bad that they will bid higher than the asking price. You should know that you may be asked to provide proof of funds for the difference, in case the appraisal comes in lower than the purchase price.

The process of getting an offer accepted can take a few days or even longer. In that time, other buyers can still make offers which will usually be given consideration. It's not officially under contract until buyer and seller have signed the contract.