Multiple Offers can be a blessing or a curse. Blessing oftentimes for sellers because they have more options and control and likely higher value for their property than negotiating an individual offer.
It typically is not a positive event for buyers, as it forces them to negotiate against other offers.
It is important for both buyers and sellers to be knowledgeable and utilize the experience of the Durango Team to help you achieve the results that are best for you.
If you are a buyer and you are in a multiple offer scenario, the first thing to determine is how much you want this property as compared to others that were on your list. You may decide to bypass the multiple offer and negotiate on another property. If you do decide to move forward with your first choice, then our advice is to offer the highest value that you are comfortable in making. In our experience the buyer that (wins) feels excited and happy and the buyer that doesn’t get their offer accepted feels a loss. Oftentimes we hear buyers wish they had made a better offer, so again making your best offer first is important. In addition, as a buyer, you may want to consider reducing the number of contingencies you have to make the offer more competitive. You can also increase the earnest money amount to show seriousness of your offer. You definitely want to provide a pre-approval letter from your lender if it is not a cash transaction to show your ability. Your Durango Team broker will assist in producing the tightest timelines that work for you and a potential seller.
On the sellers side, you will typically benefit from seeing what the market will really produce for your home. If you are on the high side of the market, you may not get a full price offer, even when you have multiple offers. If you are at a fair market value, you will likely receive near full price, full price, or over full price offers. Typically, it is just the value of the property for the seller; rather, it is the quality of the offer. Most sellers will negotiate on the offer that has the most likelihood of going to closing, even if the value isn’t as high. In our experience, the quality is often more important than the quantity.
From the sellers perspective an offer that matches their desired closing and possession dates may have as much value as price amount. Sellers may be anxious to make offer on another property to move forward.
Post courtesy of The Durango Team Blog. Read more or search Durango real estate.
