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Multiple Offer Mystery Solved

Blog by Claire LeLacheur | October 28th, 2010

Multiple offers don't have to be a mystery but they are effectively like tying on a blindfold and buying some real estate.

As a listing agent once you have confirmation that one or more offers are coming in on your listing, the first thing to do is to find the Seller and make an appointment to have the offers presented to them. Offers must be presented in the order that the listing agent receives notification that there is an offer. All offers know how many other offers there are involved in the situation, and whether or not there is another agent representing the Buyer or the listing agent has afforded a Buyer Limited dual agency. No other Buyer or Realtor will ever be told any of the terms or conditions of any of the offers as well as the price. These details must be kept confidential from all of the parties involved.

For example, Sally Seller puts her house on the market. After an afternoon of showings Betty Buyer decides that she would like to put an offer on Sally's house. Betty's agent prepares the offer and calls Sally's agent. Bobby Buyer has also decided that he would like to write an offer on the house. Bobby's agent prepares an offer and calls Sally's agent. Both Betty's and Bobby's agent now hear that there are two offers coming in on the property and both offers will be presented tonight at 7:00 pm at Sally's house with Sally and her agent present. Betty's offer will be presented first then Bobby's offer. Betty can not know what price Bobby's offer will be, and she may not even ever find out that Bobby is the person making the offer on the house as well.

In all multiple offer cases, it is the offer with the most money and the most favorable subjects to the Seller that the Seller will pick. If you are in a multiple offer situation, and the Seller tells you he needs end of March Completion dates, you should be prepared to offer him those dates, as that will look more favorable to the Seller and he will be more likely to pick your offer.

When you find out from your agent that you are going into a multiple offer situation, be prepared, as well, to offer more then the asking price. Sometimes it means only another $1000 dollars over the asking price and sometimes it could be another $100,000. It all depends on how many other offers there are to compete against.

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