First of all, what is a multiple offer situation? If any given home on the market receives more than one offer—even if it’s just 2 offers—then you have a multiple offer situation. In certain markets where there is a lot of competition, a multiple offer situation is extremely common, and real estate agents and buyers are used to these situations.
If you’re getting ready to buy or sell a home, take a quick look at what to do in a multiple offer situation so you’ll be prepared!
As a BUYER, here are a few things to consider about a multiple offer situation:
As a buyer, you’ll want to be sure you’re using a real estate agent who is familiar with your market. They’ll have an educated sense of how much a popular home listing will go for, and what you’ll need to do to win it. However, it is important to keep in mind that even with a seasoned agent, the ultimate decision of whether or not an offer is accepted is in the seller’s hands.
With multiple offers, even if you put in the highest offer, it’s not a guarantee that you will win the home. The rest of your offer will affect how appealing it is (including other factors like contingencies). It is ultimately up to the sellers as to what offer they accept, so it’s important to carefully consider what your particular sellers may be looking for.
As a SELLER, here are a few things to consider about a multiple offer situation:
If your property receives multiple offers, you will have to examine each offer to determine the best one for your situation. You can simply accept the highest offer, you can tell all buyers what the highest offer is and ask them to make an even better offer, or you can pursue an offer with a counteroffer.
There are pros and cons to each strategy. It’s possible that encouraging a bidding war will cause other buyers to lose interest and drop out, for example. Your real estate agent can offer insightful advice on the advantages or disadvantages to each specific offer.
Ready to make an offer? Read more about what goes into making an offer on a home here!