You have finally found the home of your dreams after endless days of searching and your REALTOR® informs you that you will be competing against another offer or offers. What does that mean? What do you do?
A Multiple offer means that more than one party is interested in the same property as you, and would also like the opportunity to buy it. The sellers may want the competing offers to be presented at the same time for convenience as well as to receive the best terms and conditions on their sale.
When REALTORS® are notified that we will be in a competing position; we will not know what the other party will be presenting. We discuss all details of this situation with our clients and then act according to our instructions.
So if you really want the property what do you do? My suggestion to my clients is that they may not get a second chance to present their offer. For example, if the seller has received three offers, they certainly cannot sell the home to all three clients, therefore he or she will only be able to pick one at a time. Which one should he pick first?
As the buyer, you will want to put your best foot forward. Here are some suggestions;
Although the seller is not always motivated by price, in some cases they are.
Offering a solid deposit amount reassures the seller that you are serious.
Having shorter subject removal times, allows the sellers to not have their home tied up too long in case you cannot remove subjects.
Knowing ahead of time and granting the sellers their desired possession dates is sometimes a bonus.
Knowing ahead of time what is important to the seller to keep, for example some appliances, and allowing them to have them.
What I don’t suggest you do in a multiple offer (or any offer);
Not do an inspection. I have seen firsthand the financial ruin of clients that have bought a property without inspecting it and found mould, water ingress and huge structural deficiencies.
Not have in writing that you qualify for the mortgage on the property, and/or the home meets all your lender's criteria including appraisal.
Not make sure you and the home are insurable, otherwise your lender may not advance your mortgage.
Not see a title search of the property to understand what you are buying.
Not know any environmental details relating to the property such as creeks, oil tanks etc.
Over and over I have seen disappointed clients walk away loosing out on a multiple offer only to find another home that is as great or better that becomes theirs.
Do you have a real estate question, Contact me.<
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