Bidding wars are taking place more frequently in today's market, a sign of improving conditions. As we start to see more buyers fighting over the same home, we offer words of caution and some helpful advice. 

For those not familiar with the term, a "multiple offer" situation or "multiples" in real estate lingo, occurs when more than one buyer is attempting to purchase the same home at the same time. This happens not only on homes that are new to the market, but also to homes that have been sitting for a long time.

The important point we want to convey is that a multiple offer situation can happen at any time and will present additional challenges to both buyer and seller. These transactions can be much more stressful and complex so strategy is extremely important here. One wrong move could put you in a bad situation.

As a buyer, not only do you have to negotiate with the seller, but you also have another buyer to worry about.  

As a seller, while most dream of having multiple bidders for their home, it isn't as great as it seems. Buyers are often very uncomfortable being in a competitive bidding situation. If you don't play things right here you could alienate all of your buyers and end up with none.

The fact is, emotions tend to run higher than normal in this type of situation. A competitive situation tends to bring the worst out of some people and unfortunately there are losers who end up very unhappy.

 To avoid the additional stress, we tell our buyers that if they like a particular home, write an offer as soon as possible. If you like a home, odds are that some other buyers will feel the same way about it.  Hesitating could cause you to lose the home of your dreams or have to enter a bidding war for the chance to buy it.

When it comes to multiples, understand that they do exist in all price points and could happen at any time. Having an experienced agent guiding you through the process is critical here.

 

If you liked this post, please subscribe to our blog. We always appreciate having new readers and more importantly, enjoy making new friends.

 

Here are some of our others posts that may interest you as well:

One Question That You Absolutely Must Ask Your Clients

5 Reasons Why Using A Local Agent Is Better

Cool Virtual Tool To Help Pick Out Paint Color

Is Social Media Killing Confidentiality?

Real Estate Agents Are Not Just Door Openers

 

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About The Authors:

Dan and Amy Schuman are agents with Howard Hanna, the area's largest real estate company. They live in Solon Ohio and specialize in Cleveland Luxury Homes, working with buyers relocating to Cleveland, and first-time buyers.

 

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Multiple Offers Are More Common Than You Think is the property of The Schuman Team and may not be duplicated or used without their written consent. ©May 2012

 

 
Post is included in group: Advice for Buyers
Post is included in group: Realtors®
Post is included in group: Cleveland Ohio Real Estate
Post is included in group: Cuyahoga County Ohio Real Estate

22 Comments on Multiple Offers Are More Common Than You Think

20 Most Recent Comments Displayed Show All

MAY
22
588,845 Points 56 Featured Posts Outside Blog Called Shot Master

Dan and Amy, I don't think any buyers would feel comfortable in those multiple offer situations. But, making your BEST offer, and not hesitating are good sound recommendations for our buyers. Plus, I would normally ask them, "How would they feel, it they didn't get that home?". Depending on their response, I may even suggest that the offer more that that listed price. It all depends on how bad or how much they want the Home. 
7:36am • #3
510,188 Points 8 Featured Posts Outside Blog

Buyers dont believe that until it happens to them.  In my area it is pretty common on the 'good' first time buyer -entry level homes.  there are a lot of buyers out there looking for their first home- there is competition, and when the good ones pop up, they all see them!
7:43am • #4
1,052,215 Points 285 Featured Posts Outside Blog Called Shot Master

Dan, Very true.  If you like it, don't hesitate.  That overnight of "thinking about it" might be the same thing as someone else is doing, except maybe their overnight was last night.  If it fits and you want it, pull the trigger and START with a decent offer instead of being more concerned with getting a steal.
8:01am • #5
287,150 Points 26 Featured Posts Localism Sponsor Hit Router Called Shot Master

Tim - We are starting to see more of them as well. 

Eric - Nice to hear the Boulder market is thriving.

Jerry - The question you ask is a great question. It really makes them think and if they say that wouldn't care if they didn't get the home, perhaps it's not really the right home.

Robert - So true, you can tell them up front but sometimes people need to experience things first hand.

Bliz - Well said! I see too many people hesitate and when a buyer loses out on a home at least they learn for the next time.
12:55pm • #6
106,366 Points 2 Featured Posts Outside Blog Attended Rain Camp
Hi Dan and Amy, thats great advice. Even short sales can attract multiple offers. As you mention, this can be stressful for bith buyers and seller. I think the key to success is good communication between the listing agent and the buyers agents. Letting all the buyers agents know they are being treated fairly and giving everyone the same deadline for "best and higest" offers for example.
6:10pm • #7
159,298 Points 2 Featured Posts Outside Blog Called Shot Master

I've seen multiple offers happen on homes that were sitting for a few months. I guess all of a sudden everyone likes the dang thing.

You are correct, if you like it then, dont wait!
6:27pm • #8
865,595 Points 18 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Multiple offers are definately becoming more common - It is important for buyers and sellers to know what to expect and how to handle this situation.
7:10pm • #9
570,707 Points 25 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

We sure are in a multiple offer situation up here in Sacramento County.  Recently my clients put an offer n a house on its third day on the market and we were told that they already had 12 offers - all above list.  Buyers who have gotten used to underbidding have to learn new rules.  Make your highest and best offer if you really want the property.
7:24pm • #10
510,688 Points 1 Featured Post Outside Blog Attended Rain Camp Called Shot Master

I'm envious when I hear of areas with multiple offers happening regularly. We're still working on turning that corner from being a buyer's to a seller's market. Looking forward to seeing multiple offer situations.

Gretchen
7:29pm • #11
462,537 Points 2 Featured Posts Outside Blog

Been here lots of times before. Most Buyers I know definitely don't like being in this position.
7:44pm • #12
880,447 Points 10 Featured Posts Attended Rain Camp Called Shot Master

Dan, you are right - multiple offers are common and were there earlier. The key is, to list the home at right price (or just 2% below market value!) The home has to be in good condition, for sure.
8:12pm • #13
MAY
23
4 Featured Posts Outside Blog

I was just having lunch with a Realtor friend who sells in Pasadena California... his last 4 listings had anywhere between 6-10 offers! It's my observation that properties with more than 2-3 offers are driven by investors.
12:13am • #14
555,452 Points 31 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Buyers have a hard time getting this.

The offer I made on Monday was on a house that was $32000 under our computer valuation. There were multiple offers in the first 3 days on market.

My buyers response to this information? "Let's go ONE THOUSAND over asking price!"

Our chances on that house are virtually nil...

Phil
1:10am • #15
1,052,215 Points 285 Featured Posts Outside Blog Called Shot Master

Most of our inventory here doesn't quite have that "oomph" to generate multiples, but there are exceptions.  And it is a tightrope.  Will multiples encourage everyone to go best and final, or will they just walk for fear of overpaying?  We've seen both scenarios play out.
3:13am • #16
275,890 Points 17 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Oh yes they are more common now.  Particularly in the lower price points in our area where first time home buyers are competing with investors.
4:29am • #17
974,629 Points 6 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
I like to say they should present their no tears price. No regrets, period.
5:10am • #18
802,685 Points 20 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I have been on the receiving end of multiple offers a couple of times over the past month. The times are changing!
5:18am • #19
JUN
08
509,628 Points 2 Featured Posts

I hear you, this is so true, we had two on the same building happen just yesterday... One happy one .. Not so much!
4:15pm • #20
JUL
09
143,429 Points Called Shot Master

Lots of buyers are just waiting for the right home at the right price, and when they see it, they jump on it!  Results in multiple offers.
10:18am • #21
287,150 Points 26 Featured Posts Localism Sponsor Hit Router Called Shot Master

Jeff - Thank you so much for reaading and commenting. I'm sure you are seeing this in CA as well.
10:28am • #22

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Dan and Amy Schuman- Cleveland OH Luxury Real Estate

Solon, OH

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Howard Hanna Real Estate Services

Address: 28879 Chagrin Blvd, Cleveland, oh, 44122

Office Phone: (216) 831-0210

Cell Phone: (216) 346-3235

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Welcome to our Active Rain blog, a platform we use to communicate to buyers, sellers, and other real estate professionals. We cover topics relating to real estate but discuss other subjects as well, including our local area, Cleveland, Ohio. We want everyone reading to come away feeling that the time spent here was worthwhile. Thank you for visiting our blog. Clicky Web Analytics

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