Multiple Offers: It’s Not Always about Price
When you find yourself in a multiple offers situation on your dream home, remember: It’s not always about the highest price. Listing Agents and sellers look at the entire terms of the offer you are making. There are a number of items that can make your offer stand above the rest!
Mulitple Offers are More Common Now
Time and again, in this super low inventory market, listings are receiving multiple offers – sometimes within a few hours of going live on the MLS Service.
In the last month or so, the number of showings that Buyer’s Agents are requesting is unbelievable! Most of our own listings go into a multiple offers situation very quickly.
This is the reality of today’s local seller’s market and hopefully your agent has talked with you about this possibility. You don’t want to lose your dream home – you know exactly where the couch is going and what bar stools will look fabulous at the kitchen island!
If you are serious about getting the home, it’s time to step up your game.
The buyer’s who are winning in these situations are the ones who have a savvy Buyer’s Agent like the agents on The Real Estate Pros team. Seriously.
There are in’s and out’s in the terms of an offer that can make it more attractive to sellers. Remember, it’s not always about the highest price offer!
Purchase Agreement Terms
In an IAR Purchase Agreement, there are a lot of terms to be decided. A buyer should go over all of them with their agent to come up with an offer they are comfortable with and that will grab the attention of the Listing Agent and seller.
To just increase your offer price to one that you think will be the highest, is not a great idea for you or the seller. While price is key, offering more than the property is worth can backfire on you.
Listing Agents know a home that will be financed has to appraise for the agreed upon purchase price. If that price is higher (sometimes significantly higher) than market value, likely, the listing agent will bring this to the seller’s attention. More is not better if the home will not appraise.
It’s a better idea to consider ALL the terms of your offer (in addition to price) if you want to rise to the top of the stack!
What Terms Can You Play With
After talking with your lender, talk with your agent to define other terms of a purchase agreement that can help you get the home of your dreams.
Terms like:
- Possession
- Property Taxes
- Closing Date
- Who pays the Settlement Fee to the Title company
- Home Warranties
- Closing Costs Allowances
- Shorten or Waiving Contingencies
- Larger Earnest Money Deposit
- Write a letter to the sellers
- and more!
These are all terms a seller looks at in addition to price when evaluating and choosing an offer from multiple buyers.
Keep in Mind the Seller’s Options with Offers
A seller can handle multiple offers in a few different ways. Their Listing Agent will lay out the options below and the seller will have the final decision about how they wish to move forward.
- Seller can simple accept one of the offers received
- The seller could call for Highest and Best Offers from all submitted by a certain time
- A Seller can counter one of the offers and negotiate. If they do not come to terms, they can counter another of the offers received (if still within the offer deadline) or they can choose to do number 1 or 2 above.
- Seller can counter one of the offers and reject the rest.
It’s a tricky situation and you can see how an experienced, savvy agent is important for a buyer!
The Decision is Yours Alone
The final decision as to the terms of your offer is, of course, yours as the buyer.
Your agent will give you their advice based on past experience and the current market. However, there is no guarantee as to how a seller or Listing Agent will act or react in a specific situation.
By putting your best foot forward and making the whole offer package as attractive as possible – while still being comfortable with the terms yourself – you can help your offer stand out in a crowd.
Your best bet is to hire the right agent and team. We’ve got you, there! Your guide is key to winning in a multiple offer situation!
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