How to Optimize Your Success in a Multiple Offer Situation

How are today’s buyers and sellers approaching multiple offer situations, and which approach is the most effective? Let’s discuss some common tactics.

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Whenever a market is swayed to considerably favor either buyers or sellers, multiple offer situations tend to become more common. And when a listing meets certain additional criteria, like being aggressively priced, the likelihood that it will receive a high level of interest becomes even stronger.

With this in mind, what’s the best way for buyers to tackle such situations and what kinds of offers should sellers prioritize?

Back during the recession, sellers would choose a buyer based on which offer was “highest and best.” They would often also impose a deadline for a given offer, which put a lot of pressure on those looking to purchase the home. Having an expert advisor to guide you through scenarios like this was extremely valuable during that time and is actually still valuable today.

Although seller expectations have changed since the recession, most people who have listed their homes still hope to earn the best deal possible.

One common way today’s buyers navigate multiple offer situations is by including an escalation clause in the offer. An escalation clause allows buyers to surpass competing offers up to a certain dollar amount. This allows buyers who find themselves in a bidding war to retain the upper hand (within a particular threshold). 

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Carefully reviewing all offers with the help of a real estate professional is the most effective way for sellers to achieve optimal price, terms, and conditions.

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Sellers should also realize that price isn’t everything. Selecting the offer that is highest and best is not the best way to maximize equity. Independently negotiating with each buyer is a far better approach. Carefully reviewing all offers with the help of a real estate professional is the most effective way for sellers to achieve optimal price, terms, and conditions.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.