How To WIN the House in Multiple Offer Situations

By
Real Estate Agent with Front Gate Real Estate Broker 11085

I've heard listing agents say they don't care for multiple offers because they are "stressful".  That doesn't make sense to me. As a listing agent, receiving multiple offers mean the buyers will present their best offer, which will result in a higher bottom line for my seller.

 

Price, however, isn't the only consideration in deciding which offer to accept or counter. Terms can be just as important if not more important that the sales price. 

Terms and Conditions

 

When representing buyers I want to avoid multiple offers, but if representing the seller, my job is to get the BEST offer I can on his or her behalf.

 

When offers arrive, they are opened and reviewed. I've successfully negotiated several multiple offer situations this year. In one example, Offer #1 had THREE contingencies;,  financing, a home inspection contingency AND a property to sell. Offer #2 was all cash, (but low) and also with contingencies. A third offer arrived. The buyer realized if they wanted the house, they had to put their best offer forward. In doing so, Buyer #3 won the house.

 

The seller has the right to determine how multiple offers are handled, and we carefully discussed his options. All three buyer agents were advised there were multiple offers on the property, and were encouraged to submit their highest and best offer. 

 

Once an offer was selected, we then negotiated to fine-tune the terms of the contract. 

 Results

Following are tips to WIN the house in a multiple offer situation:

 

  • Remove as many contingencies as possible. If you have a house to sell before you can purchase, your bargaining power is lessened. Ask your lender if you can handle two mortgages, at least temporarily. See if there are creative financing options so you can eliminate the contingency to sell another property.

 

  • Don't pile on "extras". Some buyers (or buyers agents) will ask for the sun, the moon, and the stars, and in doing so, they could miss out on the house of their dreams. Don't ask the seller to pay closing costs and a home warranty and prepaid items and a large repair allowance, etc. Don't ask for the three year old stainless refrigerator or the flat screen TV, either. Keep the offer as simple as possible.

 

  • If you are in a multiple offer situation (be sure to ASK if there are other offers on the table), come in strong. Let the seller know you are serious. Offer more than the token amount of earnest money. Find out if there is a preferred closing date that works better for the seller.

 

  • Don't be adversarial. Sometimes being NICE can go a long way. Refrain from criticising the sellers decorating style and always be courteous. Don't turn the multiple offer situation into a conflict and don't be a bully.  

 

Be considerate when making your offer. This is not the time to play games. If you like the house, let your offer SHOW it. 

 

As a Brandon MS listing agent, I have successfully navigated the waters of multiple offers. If you have a home to sell in the Central MS Metro area, call me, because everything I touch turns to SOLD.Everything I touch turns to SOLD

 

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Rainmaker
2,146,912
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Pat - good information for serious buyers.  If they take this information seriously they will win. 

Jul 26, 2018 09:02 AM #1
Rainmaker
2,734,129
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Those are excellent strategies, Pat!  I suspect you win many successes practicing them!

Jul 26, 2018 04:46 PM #2
Ambassador
3,985,084
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Good advice, Pat. I personally don't like multiple offer situations and have been in 3 this week alone.

Jul 26, 2018 05:23 PM #3
Rainmaker
1,374,445
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Excellent tips Pat!

Jul 26, 2018 08:18 PM #4
Ambassador
3,159,923
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Multiple offers are not the time to put a wish list into your offer.  Be realistic and be competitive.  Don't be greedy.

Jul 27, 2018 02:57 PM #5
Rainmaker
590,619
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Thank you Myrl Jeffcoat and Grant Schneider. Buyers and sellers hire us for our expertise. They should be willing to take our advice as we've seen it all happen.

Jul 29, 2018 09:02 AM #6
Rainmaker
590,619
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Three multiple offers in a week Debbie Reynolds? I hope you were on the listing side, and if not, I hope your clients won the house!

Jul 29, 2018 09:04 AM #7
Rainmaker
590,619
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Thank you Sheri Sperry - MCNE®.

I knew you would understand Chris Ann Cleland

Jul 29, 2018 09:08 AM #8
Rainmaker
1,010,439
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great post!  I start out by asking what the seller is looking for in a title company, price, closing date, and anything else I can think of to sweeten the offer.  Showing cooperation from the get-go always helps seal up a contract.  Agents that are difficult to work with, don't communicate, and don't work to pull a deal together will lose every time!  

Jul 29, 2018 12:04 PM #9
Rainmaker
590,619
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

I ask those same questions Jan Green when representing a buyer. Cooperation goes a LONG way toward satisfied clients.

Jul 29, 2018 03:05 PM #10
Rainmaker
3,350,431
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Pat it is not easy when you represent the buyers but in spite of that awesome advice, Endre

Jul 29, 2018 10:11 PM #11
Rainmaker
590,619
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

True Endre Barath, Jr.  It's definitely more difficult when representing the buyer, but it CAN be done successfully. Our markets are so different, though. I can't imagine a multiple offer situation in California. Give me Mississippi any day!

Jul 30, 2018 08:38 AM #12
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Rainmaker
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Pat Starnes-Front Gate Realty

601-991-2900 Office; 601-278-4513 Cell
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