Looking at house

Multiple Offers: Are There Drawbacks?

Is it possible to receive multiple offers? Based on our current competition, yes, it is definitely possible to receive multiple offers. Multiple offers means two or more parties may be trying to buy your home at the same time. Because of the increased competition currently, they may increase the purchase price, remove unnecessary contingencies and make their offer as attractive as possible.

Of course, this can result in you realizing a higher-than-expected sales price and proceeds of sale. While the concept of multiple offers may not actually happen for you, it’s good to understand what might happen, and the best way for you and your agent to handle the occurrence.

Maybe you’ve heard of “coming soon”. This is one tactic that agents are now using to increase that line of prospective buyers, increase that interest in your home. Some agents will put a sign up on your property which indicates “coming soon”. No showings are allowed until a publicized date, but it’s a very interesting tactic which increases that prospective buyer drive.

You can even combine that “coming soon” strategy with an open house schedule for initial showings. Again, a way to increase that prospective buyer drive, get them interested in seeing your home.

Unfortunately, when multiple offers are made, there will be some disappointed people. It’s essential to follow a quite strict procedure so that you know no one is given an advantage over other buyers. Here are some things you may want to discuss with your agent:

  • Offers are all countered by asking the buyer to make their “best and final” offer, as well as a list of terms.
  • The seller may authorize the listing agent to disclose that there are multiple offers.  (Article 1, Standard of Practice 15 of the National Association of REALTORS® code of ethics.
  • Discuss if you should reveal certain information, such as price and terms, on other offers you are considering. In most cases, your real estate professional is allowed to do so with your permission, and it might make a different with negotiations
  • If one offer is substantially better than the other offers, the seller can accept or counter-offer.
  • Have your real estate professional advise you of countering more than one offer which could result in contracting to sell your home to more than one person.  They can advise you alternative ways to do this.

Here’s what you should think about. Sometimes, that highest offer is not necessarily the best offer. Even though the buyer is willing to pay a higher price for your home, if they get financing and it doesn’t appraise, it can cause some serious issues.

I encourage you to have your real estate professional tell you about asking for proof of funds from a cash buyer, or confirm their ability to pay above that appraised value.

Your real estate professional can help you realize the most out of your home.

Ready to sell your home? Then we should talk. I’m always available to talk to you at 703-303-4010.

I can provide Insider Information on Fairfax VA homes for sale. Get you a FREE Market Snapshot Report of Your Northern Virginia Home’s Value, or  Search All Northern Virginia Homes For Sale. Put that data you need at the tips of your fingers!

Leave a Reply

Your email address will not be published.