The term multiple offers can be bitter-sweet. It’s a term to get familiar with because the situation is more common than ever. Interestingly enough, the last two offers I have written this past week were both in multiple offer situations and ironically, both were bank-owned properties. So as a buyer....you may ask what exactly does it mean when you are in multiple offers? Actually, the words mean what they say. It is when more than one offer has been submitted on a property. Typically, this occurs when a property is newly listed at a better than fair market value price. Educated buyers that have been searching in the market place realize this and it feels like that everybody wants the same home that you want. You finally find that special place to call home and decide to submit an offer to the seller and in the meantime at least one or more other offers have also been submitted. Keep in mind that the number of offers do not have to be disclosed. The terms of the other offers are not disclosed because all offers are confidential. It can be frustrating, but it is fair. The buyers are all notified of the multiple offer situations and are asked to submit their “highest & best” offer immediately. There are times when the buyer will know ahead of time of the multiple offer situation and in this case, the buyer must go in with the highest & best offer initially as there may not be another opportunity to revise your offer.
The advice I give my clients is to put your best offer in and be willing to walk away with no regrets if it doesn’t work out. Keep in mind that in multiple offers, the offer that wins out will typically be over list price. Sometimes that is uncomfortable to the buyer because naturally everybody wants the best deal possible. This is what you have to remember. The home was likely priced well below value initially and so having to pay over list price is still likely a good deal. It really comes down to this....how bad do you want the home? It will still have to appraise if you are getting a mortgage loan on it, so that gives you a piece of mind that you are not overpaying.
I want to you leave with this thought. Don’t be afraid of multiple offers. Instead, embrace it and be excited! You have a chance to get a great home at an awesome price. Just be prepared for that diamond in the ruff. They are out there. Being prepared means having your finances in order with preapproval and/or proof of funds accessible.
Just an update on my two multiple offers from this week: We just found out that our “highest & best” offer was accepted by the seller and yes, we did go well over list price....but my clients got it! On the second offer, we were still patiently waiting and late today got word that the seller accepted the price, but countered the earnest money and closing date. So in essence, we got that one too! My second set of clients have decided not to accept the sellers counteroffer because as they were patiently awaiting a response, they found something else they like better so it has all worked out in the end. Patience has to become one of your best virtues when dealing in multiple offers. But it certainly can be worth the wait. I’ve been successful many times in these situations as well as helping my clients buy foreclosures.
I welcome any questions/comments you may have and I would be honored to help you find your next new home. Thanks for taking the time to read this and I hope it has helped you gain knowledge that you didn’t have before. Renee Britt at renee@bluecoastrealestate.com 910-262-1921.