Multiple offers is a word that scares everyone…except the sellers! The listings agent is on alert to be sure all details are handled ethically for the seller and all buyers and their agents; the buyers agent wants to be “the winner” for their clients and of course the buyers are now competing for a property they may have wanted to make a “less than” full price offer.
I have been working with a couple looking for a “value” purchase for quite some time only to run into the dreaded multiple offer situation on more than one occasion. Their initial response is incredulity and they respond with “their instincts tell them”…(?) not to compete as the fear of overpaying for a property take over logic. (Ahem…the price did not change!)
I have to be reminded of the pretty girl at the dance theory…if one suitor notices her, likely others are looking. If you like a well priced, well cared for, updated home in a good location, then the chances of someone else liking it are fairly high.
The notion that a buyer’s market is devoid of anyone actively looking but you is inaccurate. There are still people looking to buy a home and most willing to pay market value, with the market having made the adjustment, not the buyers desires.
In the current market conditions of the “popular price range” for condominiums in the Mauna Lani and Waikoloa Beach Resorts, the inventory is minimal! While there have been times when a multiple offer situation ends up without an accepted offer, it is rare; but does happen. The market has changed with the low supply of inventory. This is no longer a buyer’s market! There, I said it.
My Advice in the Multiple Offer Situation is to Make Your Best Possible Offer
- Make your offer with as few contingencies as you are comfortable with.
- Post a good deposit. Very important…shows strength and commitment.
- Find out what the sellers want with regard to timing and inclusions, and accommodate if you can. This is emotional for the sellers and your courtesy and patience will be appreciated.
- Provide a pre-approval letter with your offer if you are financing.
- Submit Your Offer. The only way you truly lose, is to not offer! You cannot win or succeed if you don’t try!
A hui hou!
Todd Barrett, R(S)
May 30, 2012
Great advice Pam. I always prepare my Buyers, in the event of a multiple offer scenario, to write their “first, best, and last” offer. Aloha!
Todd Barrett, R(S)
May 30, 2012
Great advice Pam. I always prepare my Buyers, in the event of a multiple offer scenario, to write their “first, best, and last” offer. Aloha!
Shaylyn Kimura, R(S)
May 30, 2012
I really enjoyed this blog Pam. As a new agent, I’m trying to gain a working knowledge of Real Estate as quickly as possible. I thank you for your detail and insight. Mahalo!
Shaylyn Kimura, R(S)
May 30, 2012
I really enjoyed this blog Pam. As a new agent, I’m trying to gain a working knowledge of Real Estate as quickly as possible. I thank you for your detail and insight. Mahalo!
Pam Deery
May 30, 2012
Mahalo Shaylyn; best of luck to you!! Anytime I can help, feel free to call on me. 🙂
Pam Deery
May 30, 2012
Mahalo Shaylyn; best of luck to you!! Anytime I can help, feel free to call on me. 🙂
Cate McCann Fleming, Realtor (S)
May 31, 2012
This is great information, Pam. The only way to know if the seller’s will accept an offer on a property is to make an offer, right? And I love that you said this is no longer a buyer’s market. The rapid shift these last few months has been pretty incredible, and I see so many “For Sale” signs coming down, especially in my VERY favorite spot on the globe, which is Ha’ena, Kauai 🙂
Cate McCann Fleming, Realtor (S)
May 31, 2012
This is great information, Pam. The only way to know if the seller’s will accept an offer on a property is to make an offer, right? And I love that you said this is no longer a buyer’s market. The rapid shift these last few months has been pretty incredible, and I see so many “For Sale” signs coming down, especially in my VERY favorite spot on the globe, which is Ha’ena, Kauai 🙂
Diane Chavez
May 31, 2012
Pam,
It is funny how often I hesitate to tell a Buyer that there are other Parties considering making an offer. It really turns Buyers the other way and they immediately decide not to engage in a bidding war….It is a common reaction but many times they loose the deal to another Buyer who may get the great price only because it was the only offer. Buyers should not feel squeemish about offering over full price because once the market turns upwards it can be a good strategy to get first position to purchase on a nice property. Your Blog is good advice.
Diane Chavez
May 31, 2012
Pam,
It is funny how often I hesitate to tell a Buyer that there are other Parties considering making an offer. It really turns Buyers the other way and they immediately decide not to engage in a bidding war….It is a common reaction but many times they loose the deal to another Buyer who may get the great price only because it was the only offer. Buyers should not feel squeemish about offering over full price because once the market turns upwards it can be a good strategy to get first position to purchase on a nice property. Your Blog is good advice.
Claire K. Bajo RS SRES
August 20, 2012
Great advice Pam! Buyers should make the offer to at least stand in line for the chance to get the property. Well said! I’m looking for the clause that says that the buyer has the last say once the Seller finally accepts their offer. Mahalo for the blog!
Claire K. Bajo RS SRES
August 20, 2012
Great advice Pam! Buyers should make the offer to at least stand in line for the chance to get the property. Well said! I’m looking for the clause that says that the buyer has the last say once the Seller finally accepts their offer. Mahalo for the blog!