As the real estate market changes, multiple offers are appearing again.
A multiple offer situation arises when several, different, competing buyers all make offers to purchase the same property.
Sometimes a listing agent will encourage multiple offers by pricing a property below market, and placing a deadline on the delivery of offers.
As a buyer, consider these strategies when you enter a multiple offer situation:
Offer your best price.
Indicate as large a down payment as possible. If there are competing offers at the same price point, sellers will often lean towards the offer with the larger down payment; feeling that this buyer will be better able to obtain financing.
Be aware of the seller’s position regarding length of escrow. The corporate seller of a bank-owned home will want as short as escrow period as possible. A large family may need more time to move, and may appreciate a longer escrow period.
Consider some non-price concessions. Perhaps there are some fees normally charged to the seller that the buyer can volunteer to pay on the seller’s behalf.
Be sure your offer is delivered to the listing agent in advance of any deadline set by the listing agent; but not too far in advance.
The seller may choose to respond to more than one offer by making a “Multiple Counter Offer”. The terms of each multiple counter offer are not required to be the same.
Buyers who remain interested must either accept or counter back to the multiple counter offer.
The seller will make a final selection; or will issue another round of multiple counter offers.