Multiple Offers – One Round or Two Rounds or More
An issue arising frequently is how to conduct a Multiple Offer “bidding war” by the Listing Agent.
There are essentially two choices:
One Round – Bring Your One and Only BEST Offer
Two Rounds – Once you are here, you will have a chance to IMPROVE
There are no set rules for Multiple Offers. So, you could make up your own. You would have to write them down and distribute them to all participants in order to ensure that absolutely everyone knows that you are just permitting “one round” and then you are going home.
The “real problem” is the communication of the rules. Then, in all fairness, you really can’t change them afterwards.
You would be wise to set the ground rules from the start and stick to it. If there is a possibility of improvement, give everyone a fair chance.
There is a risk of annoying the high bidder. Why force this individual to stay around all evening while other Offers are being considered? Sometimes, they just leave and choose not to participate in Round two and subsequent rounds. It becomes risky.
Invariably, it’s always “too close to call” and the Seller has decided to send everyone back.
This can deteriorate into a nightmare with Offers expiring over the evening while the Sellers reviews them all.
Many experienced Listing agents will indicate “one round”. That works as long as everyone knows the rules at the outset
The several rounds will often simply emerge by accident.
Brian Madigan LL.B., Broker