Multiple Offer Situations
I recently listed a charming property in Carrollton that had been meticulously maintained. The home was built in 1983 and the original appliances in the home are still sparkling as if they are brand new. The pride of ownership is evident.
We listed the property at a fair market price taking into consideration that the future owner would most likely want to make cosmetic updates in the home. Not everyone appreciates sparkling appliances from the 80's. Here's the funny thing - some of the buyers that walked through the home LOVED everything exactly as it is. Refreshing and it reminded me not everyone is into greige paint and white cabinetry.
24 hrs after we listed the home on the MLS the showings poured in. We had 83 showing requests. 83!!!!! 75% of the showings actually took place and can you imagine the scene and mob of people going through a 1700 sf home over the course of 2 days?
Ultimately, we received 26 offers on the home. Two of the offers were rescinded before I could review with my seller, so 24 was the official number. Not too shabby.
From the listing agent’s point of view, it's imperative to organize the data in a format that is easy to review. A spreadsheet was created to track everything including offer price (of course), whether offer was cash or financed, close date, leaseback date, requested home warranty credit, title policy cost responsibility, survey responsibility, etc, etc...
If you’re representing the buyer, here are some things you might want to keep in mind if you think you’re going to be in a multiple offer situation …
It was really helpful when the agents included a detailed recap in the intro of their emails listing out the high points of the offer. It's nice to have a quick snapshot and be able to validate the offer that was attached.
It’s helpful when the listing agent doesn’t have to scroll down through Docusign logos, dot loop logos, etc Keep the contract concise and simple to read.
It's helpful when all the documents come in one PDF file vs. separate attachments for each part of the contract.
Set the expectation with your buyers right up front. Let them know they have to go ALL OUT. (Everyone may have a different comfort level and you have to respect your client’s wishes, just make sure they know what they are walking into). If they love the property and don't want to lose it they have to be prepared to put it all on the table.
You might advise your client to offer to pay the cost of title policy, the cost of a new survey, home warranty policy, close at the title company listed in the MLS, give a courtesy leaseback, and of course submit your highest dollar amount possible. The goal is to submit an offer that the seller will just initial and sign and not ask for a thing to change.
Make sure you include a prequalification letter (or proof of funds letter if it’s all cash) with the initial offer. Without one of those, the seller might not take your offer seriously.
Many of the agents did an excellent job fighting for their clients. I answered every call, text, and email updating them on the status. I know what it’s like to be on the buyer agent side in a multiple offer situation, so I treat all of the agents and buyer’s lenders with respect.
One last thing, sometimes the highest offer doesn’t win. Price is just one of the many provisions in a contract. The seller will consider all of them before selecting which offer to work.