Multiple Choices for Multiple Offers
A post by Bryant Tutas of Poinciana, Florida has brilliantly outlined that sellers have many choices when their home is the hot property. This broker with Towne Realty, Inc. wrote in his Active Rain blog about how to negotiate a multiple offer situation.
At first glance, one would not think there are many multiple offer opportunities in today’s market. You’d be wrong, though. With the housing prices at historic lows - coupled with low interest rates - savvy buyers are on the hunt for great deals. Believe it or not, there are plenty of people now willing and able to buy and when they find a good house at a great price, they pounce. (And as we saw earlier this week, there are plenty of great houses at great prices!)
Often this results in multiple offer situations. I am a bit embarrassed to admit that at one time I thought it would be in the seller’s best interest to disclose to buyers that there are other offers. It only took one situation where buyers immediately ran away because they didn’t want to compete with other buyers to realize that perhaps disclosure isn’t always the best way a seller should go. One suggestion,
Don’t disclose and negotiate all offers at the same time. I actually have done this many times. The key though is to make sure the Seller does not sign the counters. If they do, and the Buyer accepts it and signs, then you have an accepted offer and the game is over. This can be a good technique if all the offers are pretty close in price and all the Buyers are equally qualified. Then it is just a matter of who responds the fastest(motivation). You don’t disclose, because then they would all respond quickly. You want their motivation to be, that they are anxious to purchase, not that they are anxious to beat out the others.
The other strategy offered by Mr. Tutas that I found most interesting was to FULLY DISCLOSE all prices to all buyers. He said this is often quite successful in getting the seller the price they want.
Most importantly, however, is that whatever is done - it’s the decision of the SELLER. Well said, Mr. Tutas. As Realtors, we are to obey the lawful instructions of our clients. Make sure they seller knows all their options before they make the decision on how to proceed.
