Special offer

I'm not the only offer on this foreclosure...now what?!

Real Estate Agent with RE/MAX Advantage

I have 2 foreclosure listings right now that are in multiple offer situations. Here's a couple of suggestions for people who have clients facing a multiple offer situation on a foreclosure.

Just to clarify, a multiple offer situation means that there is more than 1 offer on a specific property.

Typically the first thing that comes up, is notifiying all parties of the situation. Many times the seller's representitive (asset manager) will ask for a highest and best offer. This form is one of the ones that we use. It lays out a couple of things.

1. Inform parties of the situation.
2. Inform the parties of their "highest and best" deadline.
3. Inform the buyer that only the "best" offer will be accepted, or have a counter offer.
4. If the "best" offer isn't good enough, the seller will counter the "next best" offer.

There are a also a few lines for "acknowledgement" from the potential buyer and also for the Realtor involved.

At the very bottom of the form, there are 3 check boxes:

  • Buyer wishes to rescind offer
  • Offer to remain the same
  • Buyer wishes to revise offer, and can be written on this page 

With all of that said, it's pretty straight forward what to do. But, the next is my "tips" on being successful in a multiple offer situation. First and foremost, there is always a winner and as much as I hate saying this...a loser!

I don't tell all parties what the offers are for - I don't find it to be fair. I suggest to people that they make their highest and best offer based on how they feel if the DIDN'T get the house. This could even mean going OVER list price.

Beyond that, I tell people to try to be patient. It's a tricky situation, and as much as they don't want to be in it, we're not all that excited about it either!



Not a real person
San Diego, CA

This is where some Realtors apparently become unethical. The home has been on the market for nine months, with the last price reduction being three months ago. So I make an offer on the property and all of a sudden there are three other offers on the property? Hmmmm. I walk. I don't do business with those types of people. Then it's always interesting to see that the other three prospects apparently also walked because the property is still on the market three months later. If the Sellers want to counter my offer, then by all means do so, but don't try this "we have other offers, so hit me with your highest and best offer." Ain't buying it, although I'm sure some will.

Apr 25, 2009 10:04 PM