Multiple Offer Situation FAQ’s
Every real estate market is different and trends cycle from Buyer’s markets to Seller’s markets and anywhere in between. Certain times of year can also impact this. Here in the Phoenix Metro area, it’s definitely not uncommon to see multiple offer scenarios, especially in the lower price points. Therefore, I wanted to write this blog in order to provide some insight and answer some frequently asked questions that come into play.
How do I know what to offer?
This is where our experience and guidance really come in. I will ask the listing agent some questions to find out everything I can that may give us an edge when preparing the offer. They won’t always be forthcoming with answers, but there are different tactics we can use. At the end of the day, you’re the one whom makes the decision on what to offer, but I will be asking you how bad you want the home. If you would be devastated to miss out on it, then we might go in more aggressively than if your mindset is that you like it, but wouldn’t be too upset if your offer wasn’t selected. We also do not want our buying clients to overpay so I will be honest when it comes to where you should draw the line.
Can I still compete even though I need help with Closing Costs?
The short answer is yes. There are many factors, which come into play though… sometimes we can bump the price up a little in order to offset and keep the seller’s net in line while you also get the help you need, but the home has to still appraise for that higher figure. Sometimes we can get away with not asking for quite so much in concessions and your lender can also help out by kicking the interest rate up a touch. It’s also possible to find out what’s really important to the seller… maybe they need a few days post possession and would be willing to provide some closing cost assistance in exchange for that. We do our best to get creative.
Should I offer real high just to get my offer accepted?
Some people use this approach… they’ll offer well over list price just to get their offer accepted, believing it will appraise for less later and the seller will just come down. Well, not all sellers will adjust later and you may then be out the appraisal & inspection fees if the transaction falls apart. Also, if it does happen to appraise for higher, you need to be comfortable paying that amount. There’s always a chance that happens. It can also be counterproductive… some listing agents will see through that and let their sellers know the buyer is using this method, which can turn a seller off.
When is the best time to submit when they’re not reviewing for a few days?
This one can go a couple of different ways… I certainly call and speak with the listing agent. I will always try to find out what else might be on the table. If I’m able to find out that nothing too great is in, then I will ask if there’s a possibility of us submitting a real clean offer now and just moving forward. Sometimes they say yes. If they are going to wait no matter what, then I would rather wait to see what our competition looks like, if at all possible, to know how strong we need to be.
Can the seller counter back to everyone’s offer?
Yes, this is commonly done and referred to as requesting “highest & best”. It’s a way to see if anyone will sweeten their offer after the initial deadline. We used this a lot during the REO (foreclosure) days.
Can the seller accept more than one offer?
No… the seller can only execute one offer to move ahead. They can accept something in a backup position, however.