In today’s market we are seeing multiple offer situations happening a lot! What causes this? Simple. There is a lack of homes available. This mainly pertains to the City of Wisconsin Rapids and Grand Rapids, but we are still seeing similar situation in some of the outer communities.
How does a multiple offer situation work? This is where it gets a little tricky. When a Seller receives multiple offers on their home they have several options. They can accept one offer and reject the others. They can accept one offer and counter another offer with the option to be in Secondary position. They can do a Multiple Counter to all Buyers.
How does a Multiple Counter work? Let’s say a Seller has 3 offers on their home. They can issue a Multiple Counter to each Buyer. The price and terms on this are confidential, so the Buyers don’t know what the others is. If all 3 Buyers accept this counter, then it goes back to the Seller and they decide which offer to actually accept. As the Buyer, you would also have the option to counter the Multiple Counter, and it still goes back to the Seller for acceptance.
What should you do in a multiple offer situation? When making your offer your best bet is to make it strong. Go in with your best price and terms, because you are NEVER guaranteed a second chance. Make sure the price and terms you offer is something you are comfortable with, and if you don’t get the house you can walk away knowing you gave it your best shot and don’t have any regrets.
Some other things to consider that might give you an edge…
Make sure you have been Pre-Approved for financing, and make sure your Pre-Approval letter is submitted with your offer.
You can include Earnest Money with your offer.
A Home Inspection is optional, not required, so you may consider taking the risk of not having one.
Find out what the best closing date is for the Seller and do your best to work with them on that.
Overall, in most areas it is a Seller’s market right now. As a Buyer, in order to win you will need to be aware of this. Your best bet is to have a Buyers Agent working FOR you. Make sure this is a Realtor you like, trust, and knows what they are doing.
Questions, concerns, comments? Let me know.