When I get several questions on a similar situation, it makes sense to write it up so that we can all benefit from that agent’s question. Over the last few weeks, I have had a few conversations about multiple offers working with both Sellers and Buyers !!
Multiple Offers working with Sellers
When representing a Seller and multiple offers are received, life is good. It is a great moment for our seller as well as for us. The way multiple offers are handled can vary greatly and it is up to the Agent representing the Seller to follow their instructions. How you handle the multiple offer situation is dictated by the Seller.
In most cases, however the seller will look to us for guidance as to how to handle the situation. This is a moment when many agents can be perceived as playing dirty. How multiple offers are handled is specific to that Seller.
That being said, I like to be as high-minded as possible, and my preferred method is to offer notice to all of the Buyers’ agents simultaneously as follows:
“Seller is in receipt of multiple offers on this property and hereby extends the following offer to Buyer: Buyer’s offer will stand as presented unless written notification is received before _____________, that Buyer wishes to modify any terms of said offer. This modification may take the form of a new contract superseding the original submission or a written or electronically transmitted notification of modified terms from the Buyer or Buyer’s agent.”
Multiple Offers working with Buyers
When making offers on a home, you can not be sure how the Seller’s agent will handle a multiple offer situation. There may be times that the Seller will just pick the best offer that is presented and not ask for highest and best. It is important that you advise your Buyers that this can happen. You should not assume that every Seller will ask for highest and best.
If the Seller does ask for Highest and Best you are going to want to consult with your buyer. If the buyer is willing to go to a maximum offer of X, but doesn’t want to overbid if not necessary, consider this as a counter:
“In the event that seller receives multiple offers, Buyer hereby agrees to increase price offered in this contract to $_____ over the highest offer otherwise acceptable to seller with a maximum price not to exceed $_____. Seller agrees to provide documentation of competing offers with names and addresses redacted.”
We will add these to transaction desk as clauses for you to easily find again when writing up contracts.
Have a Great Tuesday, Lindsay
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