Home sells are on the increase and it is a sellers’ market out there. Some regions of the country are experiencing multiple home offers on the day the house goes to market. Negotiating multiple home offers during the sale of a home can be tricky.
There are a lot of do’s and don’ts when it comes to this kind business. The goal of buying or selling a home is not the sale of the home, but the closing of the sale.
Ask the Broker
As a buyer the same is true. Sellers are getting multiple offers and you need to know how to get the house you want and how to negotiate with that seller if they are getting multiple offers.
The first thing to know as a buyer is that decisions about how counter-offers are presented, negotiated, or accepted, are made by you, not your broker. Your broker can make suggestions, but it is ultimately up to you what offer you make, take, and how it will be presented.
Know that your broker may represent one or more other clients that are interested in the home or property. Ask how this will be handled if there are more than one interested party. Will you get first choice?
Will the other clients have precedence? Will other buyer’s offers directly complete with yours? Knowing how the broker will approach this situation will give you the facts you need to make an informed decision.
Read the Fine Print
Your offer to purchase a home is not confidential. The seller can inform other buyers that they have your offer and what your offer is. The seller can give out this information and instruct their broker to do the same.
Different strategies can be used when making an offer and there are advantages and disadvantages. If you offer less than the asking price, another buyers offer that is higher might be accepted. Going the other way, making an offer that meets the sale price or offering higher, could cause you more for the house than you wanted to. In many cases, there can be many offers at full price for the seller to choose from.
Your broker will give you advice from past sales. Though many brokers are experienced, they may not know exactly how this seller will act when multiple offers come in. Each sell is different and as the market shifts up and down, the seller behavior will change.
In the real estate game, sellers want the best price and buyers want the deal. Go into the offer with an open mind and do not be discouraged if your offer is not accepted the first few times. As the market shifts, so does the mentality of both seller and buyer. Unless you are pressed by time to find a home, weigh your options and make an offer wisely.