Is it advantageous for a buyer to write multiple offers on their top two or three property selections, or pick the best and forget the rest?
Recently, I represented a seller and we received an offer that had a multiple offer addendum attached. This told us that this buyer had a few properties they liked and ours was one of them. Without this addendum the seller might have countered the 3% closing costs the buyer was requesting. The seller reluctantly accepted the offer without any changes. This property is now in escrow.
A few days later, that same seller viewed ten properties and made multiple offers on the top three choices. In my opinion, in a balanced or buyers market, a multiple offer addendum can work in a buyer's favor. The seller realizes their property is one of the chosen few, not necessarily the chosen one.
During a seller's market some savvy agents use escalation clauses for their buyers. This form says the buyer will pay a certain amount over the best offer, if multiple offers are present. The amount is capped and another competing offer must be shown to the escalating buyer's agent.
Another novel selling strategy is the reverse offer. The listing agent and seller tender an offer to any interested buyers that view their property. Who said only the boys could ask the girls to dance? If a buyer seems interested, views the property several times, or asks a lot of questions; it may be time for a reverse offer.
A reverse offer is also a good listing tool in a buyer's market. Many sellers are looking for an ‘aggressive' listing agent. The mere mention of negotiating a reverse offer can differentiate a listing presentation.
When the going gets tough, the tough get going. Multiple offers, escalation clauses, and reverse offers are tough tactics for tough times.
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