Over the past couple of months I have written two extensive articles about multiple offers and how to handle them. One article is focuses on Multiple Offers for home buyers and one is on Multiple Offers for home sellers. I will give a brief recap and a link to each article.
From talking to my counterparts across the country, I am finding most areas are seeing very low inventory and rising home prices. Here in Massachusetts just north of Boston we are certainly seeing this as the case. A large percentage of home are receiving multiple offers and going for over asking.
What Home Sellers Needs to Know About Multiple Offers
Here in Massachusetts there are no real laws on how to handle multiple offers. It is pretty much up to the home seller on how they are handled. I have written an article, The Good, The Bad and The Ugly of Multiple Offers for home sellers.
Having multiple offers is a great position to be in as a home seller. Not only do you create competition among home buyers, often you are creating a situation that produces desirable offers, as well as create a bidding environment among buyers.
You have the opportunity to pick an offer that best suits your needs as well as probably get top dollar for your property. Of course, what home seller, wouldn't want to be in that situation!
But as I point out there are some downsides to multiple offers you need to be aware of as a seller. While multiple offers are a great thing especially in a red hot market, you need to remember not to get to cocky and push your buyers too far.
As the real estate market cools to a more balanced or even a buyers market, you may still get multiple offers, but now it becomes really important not to push your buyers too far or you can end up empty handed.
Inman news reports the failure rate of multiple offers is 50% vs the failure rate of a single offer transaction is only 10%. A lot of that has to do with buyers remorse. Having a deal not close and having to put your house back on can have consequenses you most likely want to avoid.
Learn your options and the do's and don't of multiple offers for home sellers.
What Home Buyers Need to Know About Multiple Offers
Multiple offers for home buyers certainly are not as fun as they are for home sellers. But, if you want to buy a good house you may be involved in a multiple offer situation, especially in a red hot sellers market like now.
In my article, The Home Buyer's Ultimate Guide to Multiple Offers, I discuss what can happen when you find yourself competing with other buyers and provide tips to strengthen your off.
One of the biggest things I see with home buyers during multiple offers is a misconception on how they think things should be handled. I will re-iterate here in Massachusetts there are no laws governing multiple offers. A seller can handle offers any way they want.
Assuming a seller will come back and ask everyone for their highest and best offer is big mistake #1. If a seller has many offers they may only respond to the best of the offers. If some of the offers are really strong they may just pick one and not mess around.
A home seller may not give you the second bite of the apple to raise your offer. Talk with your agent about how to handle the negotiation strategy. I have had buyers upset thinking they will get a second chance, when that is not always the case.
Uunderstand how a seller may handle multiple offers and some tips to strengthen your offer with how to handle multipl offers for home buyers.
Final recap on multiple offers..... home sellers don't get greedy and push your buyers too far, you may end up empty handed. Home buyers don't make assuptions that your offer will be treated in any particular way, put your best foot forward if you know you will be competing with other offers.
Check out my recent visit to North Shore 104.9, Keeping it Real Estate- Discussing Home Inspections with Attorney Rick Carter and Comedien Tony V. Not your average real estate radio show!!
Both articles have resources and insights from Bill Gassett , Kyle Hiscock, Lynn Pineda , Angela Duong , Anita Clark , David O'Doherty and Paul Sian.