Having buyers compete for a property may sound like every seller’s dream. Unfortunately, while a multiple-offer scenario may lead to a better sale price and more favourable conditions, it can also make the selling process more complicated. Should you accept the highest offer straight away, or enter into negotiations? If you decide to negotiate, does it make sense to do so with a single bidder—or are you better off trying to solicit more than one counter-offer?
When there are multiple offers on the table, it pays to have a full understanding of your situation. Here are five things you should know if more than one buyer has made a bid for your home…
1) High offers don’t always pan out
All too often, buyers in bidding wars get swept up in their emotions. The result can be impressive offers that never come to fruition. For this reason, it’s important to think carefully before accepting a remarkably high bid. Your agent can help you determine if the buyer is qualified—and whether they’re likely to obtain financing from a lender based on the circumstances surrounding the offer.
2) The highest offer isn’t always the best
A high bid may grab your attention, but money is rarely the only factor worth thinking about. If you’re like many sellers, you’re probably also looking to make a quick and convenient sale. To simplify your transaction, consider the buyer’s timeline and whether it matches your own. Remember that a clean offer (one free of contingencies) will typically also mean less hassle.
3) Your agent can reveal your offers to buyers
Many sellers don’t know that it’s perfectly ethical to reveal the number of existing offers they’ve received to potential buyers. Think of it as providing interested parties with all the information they need to make their final appeals. With your permission, your agent can strategically share how many offers are already on the table—and hopefully secure higher bids than they otherwise would in the process.
4) You should treat buyers with respect
It goes without saying that you want to get the best price possible for your home, but you shouldn’t treat potential buyers unfairly in the process. Be responsive and polite. Never be deceptive, and don’t waste anyone’s time. A good agent will advise you to provide this basic level of respect to everyone who makes an offer. Not only is it the right thing to do, but it will help you avoid offending qualified buyers before you’ve closed the deal.
5) Your agent is the ideal guide
No doubt about it: multiple-offer scenarios can be complex. From determining the best course of action to navigating the negotiation process, dealing with more than one home buyer can quickly become overwhelming. That’s why it’s so important to find a real estate agent you trust and rely on their guidance. Remember: experience is the greatest teacher, and nobody is better suited to walk you through a multiple-offer scenario than a professional who’s dealt with them successfully before.
For over 35 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs, by emailing us at email@example.com or calling us at 416-441-2888 ext. 772.