The Real Estate Browser Volume 8, Issue 15 | Page 10

10 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 8 Number 15 www.LynchburgRealEstateBrowser.com Strategizing in a Multiple Offer Situation by Dan Vollmer, Associate Broker, ReMax 1st Olympic While the market cools down this fall, the reality remains that we’re still in a seller’s market. That fact is likely to remain true into 2018, which means buyers are more and more likely to encounter multiple offer situations. Whether you’re planning to buy in the next few months, or maybe wait until the spring market, its still a good idea to get your head around what to expect in that scenario. First off, many first time buyers will ask, when the fact that they are now aware of the level of com- petition for the property. Here’s where strategy comes in to play. While there’s no guessing what the other offer(s) may con- tain, there are ways to strengthen ones offer in addi- tion to the purchase price. Certainly that number will be a primary factor in the seller’s decision. But other elements also have an impact, such as: the clos- ing date, the earnest money put forth by the buyer, the inclusion (or foregoing of) certain contingen- presented with the fact that there are one or more cies, and a variety of other creative ways to entice the offers on the house they want: “So, do we know what seller. those other offers are for?” And the simple answer is ‘no.’ The details of any existing offers are rarely shared by the listing agent. The common practice is to alert any and all offer-makers of the presence of the others. In other words, the first buyer to make an offer is unaware of any additional offers being made. And the second buyer is unaware if there is a third. So to level the playing field for all buyers, the listing agent most often alerts each buyer of the fact that they are now one of multiple offers ‘on the table.’ Secondly, in that situation the listing agent often advises the sellers to respond back to each prospec- tive buyer with a request for their ‘highest and best’ offer. That request usually comes with a tight and specific deadline. This gives every buyer an opportu- nity to amend or increase their initial offer, in light of For example, a seller may be willing to accept a slightly lower offer, if the buyer is willing to forego a home inspection. Or a seller may take less money if the buyer is willing and able to close much sooner than another offer. Or the seller may prefer a delayed closing. Understanding the seller’s situation and what aspects of the transaction are most important to them is key to addressing those concerns and making the strongest possible offer. One last consideration: being creative and responding quickly are to your advantage. Creating momentum in negotiations can be to your benefit and might just get your offer selected. Questions, comments, or have an idea for a future article? Email me at [email protected].