What is a Multiple Offer?
Something that has become increasingly common in our current market is the multiple offer. Quite simply you have more than one formal offer to purchase a property. Frequently they come up right as the property is listed. The offers must compete against each other, and often work to the advantage of the seller. This frequently results in offers that have few or no conditions and offers at or above the listing price.
What it Means for Buyers
Going into a multiple offer as a buyer can be tricky. You must keep in mind the number of other offers. The greater the number of offers the more competitive the offers become. If you have several conditions on financing or if you are looking for a home inspection there is a good chance your offer will be passed over. It is important to thoroughly evaluate if you can take that risk. Talking with your Realtor can help, they will be able to advise you on specific issues a property may be prone to and the odds of your condition ruining your chance of a successful offer.
How a Realtor Can Help.
Realtors are there to look out for the best interest of their clients. This applies to both the buyer, and seller’s representative. Going into a multiple offer without a realtor of your own can leave you at a disadvantage. Your realtor has your best intentions in mind, and they look to protect you from any loopholes or bad deals. They also hold market knowledge and experience that you may not have on your own.
With the rising frequency of multiple offers there are still some long persisting misconceptions. One of the most common is that the buyers’ representative knows what the offers are. This is simply not true. The buyers’ representative shares any and all pertinent information with their clients that they receive. That being said, the sellers’ representative is looking to protect their clients’ interests. If they were to release information on the value of other offers they would likely put their clients at a disadvantage and could reduce the number and value of competitive offers.
If you would like help with an offer to buy a property feel free to contact me, I would love to help!