What Should You Know About Multiple Offer Situations?
So you have finally found your dream home and
are meeting your Real Estate Agent later today to make an offer
but when you drove by the house last night...someone else was looking at it.
What if they make an offer too?
After several years of a sluggish real estate market,
we have started seeing multiple offers on properties again.
As a buyer, what should you know about multiple offer situations?
You may not know there are other offers.
The seller decides whether they want to disclose that offers have been made on their property.
At the time the property is listed for sale, the listing agent discusses with the seller
whether the existence of offers will be disclosed to potential buyers.
whether the existence of offers will be disclosed to potential buyers.
If the seller has not given permission, their real estate agent CANNOT disclose
to a potential buyer that there may already be an offer on the property.
The first offer is not given priority.
The seller can look at all offers received before responding to any offers.
After reviewing all offers the seller has several options.
- Accept one offer & reject the other offers
- Counter one offer & not inform the other buyers
- Alert one or more buyers that they are in a competing offer situation
- Alert all buyers that they are in a competing offer situation
- Reject all offers and encourage higher offers
- Delay acceptance of any offer to wait for another offer
- Reject all offers
- Do nothing
The seller is not obligated to accept an offer just because it is full price.
A full price offer may not be the highest offer in a multiple offer situation.
The seller is not obligated to accept the highest offer. Other terms such as
closing date or type of financing the buyer is using may factor into the seller's decision.
So the bottom line is, when you are making an offer on any home,
you may be in a multiple offer situation and not know.
Your first offer may be the only opportunity to buy that home, so discuss all your options
and concerns with your Real Estate Agent. They should be able to advise you
on how to make an offer that gives you the best chance
of your offer being accepted without overpaying.
Do you have more questions about buying a home or multiple offer situations?
We can help!
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