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What Might Happen If The Home Seller Gets Multiple Offers?

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

ChoicesWhat Might Happen If The Home Seller Gets Multiple Offers?

Even in a cold market, one where the buyers "own" the market, you may still not be the only buyer in love with a home!  Logically, you'd think this home has been on the market for months and months and the price hasn't changed so what are the odds that someone else is thinking about writing an offer at the same time as me??  You'd have to think slim odds, but it's strange how often this doesn't turn out to be the case.  It's almost like the home sends out vibes to other buyers, or just as likely, a buyer's agent has told the listing agent that their buyer likes it BUT they're not quite ready to pull the trigger yet.  So Call Me Maybe if you get another offer or rumblings of one??

Now the listing agent works for the seller, and while they might like to keep the buyer's agents all happy campers, they do work for the seller and follow all legal direction from the seller.   The seller has several options to pursue, some of which might not make the buyer side happy:

  • Negotiate just one offer and ignore the other(s) 
  • Negotiate multiple offers without telling that any other offers exist...this one is a tightrope because you run the risk of having multiple accepted offers if not done properly.
  • Disclose to all that there is a multiple offer situation.  This typically leads to a "highest and best" by a deadline.  The seller then typically picks from the offers to decide who to continue with.  It might not necessarily be the highest offer if other terms mean more to the seller.

Key factors a seller may consider (and should consider) is financing and other offer terms (price, closing date, occupancy date, etc.).  Other things a seller may consider?  That your offer started off much lower than the other and it kind of ticked them off.  Or that your offer contained demands they didn't like right from the start.  And another thing that just may influence the offer?  Your choice of buyer's agent.  If your agent has a rep of being a pain in the hindquarters, or not getting his/her deals through to completion and the listing agent knows that, you can bet the listing agent is providing that info to the seller.

So just food for thought, when you find that just right home, there are several things to do:

  • Act fast.  That overnight "I gotta think about it" might be the window for another offer to come in (and maybe already be accepted).
  • Start fairly with your offer.  Yes, everyone wants a bargain, but push it too far and you may just irritate the seller to the point that your offer gets kicked to the curb when another enters the arena.
  • Keep your offer clean & simple.  The more stipulations and demands you make, the less favorably your offer will be received.

If you have more questions about how to handle a multiple offer situation from the seller or buyer's perspective, just let us know!

Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz

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Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
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Comments (16)

Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Hi BLIZ,

Excellent explanation of the reality if a seller gets multiple offers!!

Jan 26, 2013 07:46 AM
Anita Clark
Coldwell Banker Access Realty ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

So very true BLiz.  There are many things a seller needs to consider when an offer(s) comes in.

Jan 26, 2013 08:04 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Dorie, All of the above is first hand :)  Been on both sides of the multiple offer situation more than a few times :)

Anita, A lot for the seller to consider when they've got more than one to evaluate.  Sometimes one of the buyers makes it easy to discard their offer though by insisting on low balling or making excessive demands. 

Jan 26, 2013 08:26 AM
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

Liz & Bill, excellent blog.  In Northeast OH (the Greater Cleveland Area), we are in a sellers market.  We have found ourselves in a multiple offer situation several times. We have won some and lost some. We are actually in one now.

Jan 26, 2013 08:29 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I really do think the energy behind a thought sends it out for other people to catch.

That's why book publishers get similar ideas from 2 or 3 writers at the same time, and why friends who haven't gotten together for weeks will both pick up the phone to call at the same moment.

Jan 26, 2013 08:58 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Pat & Steve, He had one for our seller recently after about 9 months on the market.  Probably hard for the losing buyer to believe, but life is funny that way.

Marte, There's a lot we don't understand, and why this happens the way it does is one of them.  But it seems to happen too often to think just a coincidence.

Jan 26, 2013 09:12 AM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

Absolute fantastic explanation for buyers and easy to understand.  When in a multiple offer situation, if a buyer wants the home, they must present a strong case.  Put your best foot foward and get into that home...otherwise, the search continues!

Jan 26, 2013 10:19 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Brenda, It's the point where the buyer has to decide just how badly they really want THAT home vs. any other.  And also time for us as the buyer's agent to give them the best possible pricing info to help avoid overpaying in the heat of the moment.

Jan 26, 2013 10:38 AM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Buyers seem to think that if the home has been on the market for while, then they are in the drivers seat.  A multiple offer situation can happen at any time and if they truly want the home, come up with an attractive offer and terms.  Great explanation to motivate those sitting on the fence.

Jan 26, 2013 10:48 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Leah, You just never know when that competing buyer will show up.  The longer negotiations drag out, the better the odds that someone else may show up and complicate things.

Jan 26, 2013 11:52 AM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Liz & Bill.  As the listing agent I go with the highest and best with a deadline.

Jan 26, 2013 07:33 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Conrad, We've had our sellers at one time or another choose each of the options listed.  Sometimes they're afraid of chasing off a buyer with a "highest and best" round.

Jan 26, 2013 09:52 PM
Liz Wallace
Century 21 Sherlock Homes - Rockville Centre, NY
Broker C21 Sherlock Homes, Rockville Centre, LI, N

We are more apt to be listing agents and I love when multiple offers come in.  When the seller accepts one we will then hold the other as a backup just in case number one gets iffy.

Jan 27, 2013 12:59 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Liz, It's fun as the listing agent to find out which buyers are really serious and which ones are just playing.  And nothing beats a back up offer to keep the primary in line if they start to get abrasive.

Jan 27, 2013 06:39 AM
Bobbie Smith
Stroudsburg, PA
570-242-1891

Bliz, Great list of tips for homesellers.  Even in a Buyers Market if the home is priced right this can still happen and sellers need to know their options.

Jan 27, 2013 09:17 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Bobbie, It happens more often they we'd expect, even for a buyer's market.

Jan 27, 2013 10:08 PM