Home selling tips 2021 How to handle multiple offers when selling a house
If you find yourself selling a house in todays market, especially in Jacksonville and northeast Florida, you may find yourself in a multiple offer situation…. This is a good thing. However, it’s important you handle it properly or it could cost you. I thought I would take just a few minutes to give you some possible options and explain some of the risk involved but first, if you like this video and you would like to see other home selling tips videos, let me know by smashing that like button or dropping a comment below….
It’s a crazy real estate market out there for sure, one that has put home sellers securely in the drivers seat and many homes are receiving multiple offers in a hurry. If you find yourself in this situation Your real estate agent, if you have one, will likely advise you to put out what’s called a multiple offer notice. This is a document that you as the seller will sign notifying the “offerors” that you have in fact received multiple offers on the property and gives them a deadline to consider revising their offers to their Highest and best by a certain date and time. This should also be disclosed to the buying public by way of the MLS in case there are other buyers interested in the property.
The best scenario for you, the home seller is that all the buyers who made and want to make offers to purchase, start bidding up on the purchase price, removing contigencies, or making terms more favorable to win the bid. This is commonly referred to as Bidding wars.
After the time to receive offers has past, you get to pick the offer that suits you best.
You should be aware though that there are risk when putting out the multiple offer notice. Buyers are growing weary fighting for homes to buy. Housing inventory is in very short supply and many home buyers tired of losing out on home after home are giving into the idea of pulling back from their home search or putting off buying a home completely until conditions are more favorable for them. Many will withdraw their offers completely at the mere thought of another bidding war… it happens. And it’s happening more and more.
When I’m representing a seller I advise approaching the multiple offer situation very carefully and I’ll do my best to explain my thought process. First though, you should know that a multiple offer notice doesn’t disclose how many offers the seller has, nor does it disclose what the offers and terms are. It merely states there are multiple offers on the property and highest and best are due by a certain time.
The risk to you as a seller using the multiple offer notice is that you lose one, some or all of your buyers. In most cases, I’ll advise my seller clients to consider NOT using it if there are only 2 offers on the table, especially if the offers are far apart. For example, assume you received 2 offers on a house you have listed for 800,000. One offer is for 800,000 or full price and the other is at 750,000. These 2 offers are substantially far apart. If you were to put out a multiple offer notice and the buyer at 800,000 withdraws… that leaves you with low offer. Not good.
In this case, instead of using the multiple offer notice you would be better served accepting the full price offer. Is there a chance that both offers would increase? Sure there is, but the starting point for the low offer is $50k less. That buyer has to come up in price so far, just to be in the game.
Now I just used the above scenario as an example. Many homes today are selling for more than asking price but hopefully you understand my point. Certainly the more offers you have on the table will reduce your risk of losing all the buyers or the best offers.
I’m interested in hearing your thoughts on this subject. I’m also happy to answer any questions you may have if you’ll drop them in the comments section below. If you need help buying or selling real estate Cindy & I are happy to help you. Doesn’t matter if you are in our area or not. If you are outside of Northeast Florida we have relationships with top notch Realtors all over the country and can put you in touch with someone in your area.
I’m Mike Jones, Jacksonville voice of real estate…. Thank you for watching.
Mike & Cindy Jones, Jacksonville Real Estate Agents
904 874- 0422
Berkshire Hathaway HomeServices Florida Network Realty