How Do Multiple Offers Work?
Multiple offers are becoming the norm in todays market but how do they work if you happen to find yourself in this situation? Is there a protocol a seller or listing agent must follow? Do you get to know how many and what terms the others offers are?
Multiple offers are very common in this market and believe it or not there is no formal process a seller or agent must follow. I will say there are popular trends I am seeing and I will cover those with you.
What is a multiple offer situation? The answer is simple, this happens when a seller receives more than one offer on their property. It can be a total of two offers or twenty two offers. It is common in todays market for an agent to predict when a property will have multiple offers and will actually make plans on how to handle that ahead of time. For example it is common to see a home hit the market on a Thursday or Friday with deadline for offers by Sunday afternoon.
Listing agents will often first let all the agents know there are multiple offers and then set a deadline. Setting a deadline does two things, first it sets a time so everyone knows when they need to have their offer in but also when they will know a response. Remember buyers don’t want to be tied up in a bidding war when they could move on to another property. Second it also creates a sense of urgency for new buyers looking at the home so they can move quick and create a stronger offer right from the start. This market has made buyers put their best offer up front instead of just testing the seller with a weak offer.
Once the deadline passes the listing agent will gather them all, process them and put them in an easy to understand format to present to the seller. The seller will review them, see which one works best for their situation and pick one. This usually occurs the next day after the deadline and is rather quick, remember you don’t want buyers getting inpatient and removing their offers.
Those are just some of the basics of how multiple offers work in case you find yourself in this situation. Be sure to check out my video about how to make your offer stand out in a multiple offer situation. I give you tips on making a strong offer so you can increase your chance of getting that home you really want.
With a heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate. I strongly feel an informed and educated consumer will make better decisions and be less likely to be taken advantage of.
Have questions about this or other topics, don not hesitate to contact me.
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Luis Cuevas, Realtor®
RE/MAX Cross Country
1990 Justin Road
Highland Village, Texas 75077
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