With real estate markets heating up again after the COVID lockdown, many find themselves in a multiple offer situation. What is it and how can you as buyer or seller handle it the best way? Here is a short overview.
What is a multiple offer situation?
A multiple offer situation happens when several people make an offer on a property.
This often happens in a seller’s market when competition is high – meaning there are more buyers than there is real estate for sale. However, it can happen in any market and especially for houses within a reasonable price range or those that are a good deal for another reason.
multiple offer situation as seller
If you are a seller, multiple offers are great news. You are in a situation everybody dreams of.
Your real estate agent will probably explain various negotiating tactics for you to think about. For example, you could just accept the best offer. Or you could notify all buyers that there have been other offers to give them the chance to make a better offer.
multiple offer situation as buyer
As a buyer, how can you make sure your proposal wins when there are multiple offers on the table? Here are a few tips.
The best tactic would be to find out what the seller is hoping for. Is he looking for a quick sale, sell for the highest price or maybe he even prefers to get some more time before moving out…? Maybe he has a personal attachment to the house and is looking for someone who really appreciates it. There can be many different situations that made the homeowner put his house on the market.
Making an offer
When making an offer try to make it attractive, best a little above listing price to show that you see its value. You can also offer to pay a deposit as a down payment. Like this you show the seller that you’re really serious about closing the sale.
Some even suggest to write a personal letter to the seller.
A word of caution
Please note, it has happened that buyers were told by agents that there are other offers on a house in order to get a better price, when in fact this was not true. It has to be stated that there are severe consequences for agents who do this.
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Bio
Our Property under 20k team are the founders of www.propertyunder20k.com and www.listproperty4free.com with the goal to search the cheapest real estate in the world and make it easy for others to find. The team is made up of landlords, real estate investors, architects and builders from several different countries. We just love to have a good strong cup of coffee while we write our experiences in this blog.