In aseller’s market—when the number of viable buyers vastlyexceeds the number of available properties—it’s common for homes to receive multiple offers. For buyers, it can be a challenge going mano a mano withother interested parties. You’ve found that diamond-in-the-rough house, but so have five other people—and they’re just as qualified and determined as you!
To help you come out on top, let’s look at theoffer processfrom the perspective of the seller: What are theseller’soptions whenthere aremultiple offers, and what type of offer is most likely to be accepted?
What happens when a seller receives multiple offers?
While we’d like to think that all buyers who make an offer are on an even playing field, that’s just not the case. No rule exists that says a seller mustgive all offers the same amount of consideration; if a seller gets an offershe likes,she canaccept it right away.
“The seller really has most of the control here,” says Realtor®Joyce Mitchellwith Mitchell & Associates Real Estate in Bigfork, MT.
Whenthere are multiple offers,the seller typicallytakes one of three actions:
- Accepts the most favorable offer
- Counters all offers to give everyone a chance to come back with a better bid in an effort to get the best price and terms
- Counters theoffer closest to the price and termsthe seller’s seeking
What makes a good offer?
If you want to make youroffer stand out, money certainly talks.
“If the seller receives an all-cash offer that’s at or above asking price versus an offer under asking price that requires a loan, they’ll take the first offer all the time,” saysMaria Jeantet, a Realtor with Coldwell Banker C&C Properties in Redding, CA.
The terms of the sale are important as well.These termscould help make your offer more appealing:
- Providing apre-approvalso the seller knows you are already locked for the mortgage amount you need
- Waiving your right to an inspection
- Offering to close onthe seller’s timetable (Sometimes a seller wants to close ASAP,or wants to wait untilthe kids’ school year ends.)
How tomake yours a winning offer
It’s important for home buyers not to assume that they’ll get the opportunity to submit a counteroffer; the seller has no obligation to honor this desire. Therefore, you should submit your highest and best offer from Day1 to make sure it’ll be given the utmost consideration, saysDavidWelch, a Realtor with Re/Max 200 Realty in Winter Park, FL. This is especiallyimportantif you’re bidding on a bank-owned property as the bank is unlikely to counteroffer.
In some instances, even offeringoverasking price could be the best (and maybe only) way to secure the house you’ve been dreaming of.
Heed the advice from your real estate agent (who knows the real estate market in your area) and financial adviser or lender (who knowshow much house you can afford) to formulate a competitive yet realistic offer.
