I Have Multiple Offers on My House – What Should I do?

May 4, 2015 at 3:47 pm Leave a comment

multiple offers

by: Maria Hass

 

I recently received multiple offers on a couple of properties I listed. One of the homes received multiple offers after only one day of showing.

It is flattering to receive multiple offers back-to-back. It is similar to receiving more than one proposal for your heart at one time.

The problem is — who will you pick?

It requires a knowledgeable and experienced Realtor with strong negotiation skills to achieve the best results for the seller. In a multiple offer scenario, the seller has several options:

  1. Counter one offer at a time.
  2. Counter all the offers at the same time.
  3. Accept one of the offers.

Finding the best option will depend on the type of buyers you have. By answering the following questions, the listing agent will have a better understanding about which buyer has most to gain or lose in purchasing the property:

 

  1. Why are the buyers buying the house (determine motivation)?
  2. Which buyer is most qualified?
  3. Who needs the house sooner?
  4. Which buyer’s Realtor is easier to work with?
  5. Which buyer has the lender that is reliable and can close on time?

 

Finding more information about the loan officer and lender is a critical choice. In many cases, a lender can make or break the deal. The listing agent should know if the lender can close on time; the lender’s requirements; the structure of the loan officer’s business; the ability of the loan officer and his or her team to communicate with you; level of experience; track record, and so on.

 

Big banks like Wells Fargo, Chase Bank and Bank of America, based on my experience, do not provide good training and supervision for their newer loan officers. This can result in many failed transactions. Big banks have a multiple layers of bureaucracy and restrictions that can prevent the Realtors and all parties involved from knowing what is really going on with the buyer’s loan application.

I had a file handled by a Wells Fargo loan officer which did not close because the loan officer could not get the buyer’s salary disclosed in the loan documentation to match up with the buyer’s salary as reported by their employer’s a few days before closing. The buyer did not get the house and I earned zero commission on a transaction that was near its conclusion.

The listing Realtor’s art of disclosing or not disclosing information on other bids is dependent on seller instruction and is crucial in influencing the final price for the house.

 

On the other hand, it is possible for some buyers to lose interest in a property if placed in a multiple-offer situation. These type of buyers are not interested in competing and raising their price; they would rather go look for other properties than watch the prices go up. It is important for the listing agent to keep the buyers updated about the process and to keep the buyer’s Realtors engaged in these exchanges. Otherwise, you can lose ALL your buyers.

If you are fortunate enough to get multiple offers when selling your house, if you aren’t working with me, be hopeful your Realtor follows the rules I do: Think smart, know your buyers, and engage with them to compete with each other’s bids.

Good luck!

 

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , , , .

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