Multiple Offer Situations
“With the current shortage of listings on the market, I am frequently faced with multiple offer situations when listing a client’s home. I think I am covering all my bases, but would appreciate any ideas. Thanks.”
Signed, Multiple Offers
Dear Multiple Offers:
I have consulted with several noted Real Estate Brokers. Here is their list of things to help your client consider when evaluating multiple offers.
The first step is to clearly understand the seller’s needs and wants. What’s important to them? (i.e. a quick close, the best price, cash offer, being able to rent back for a month, etc.)
Have a specific review period and cutoff date for offers. This maximizes the seller’s chance of receiving multiple offers.
Create a spreadsheet comparing all the offers. The benefit is for the seller to clearly see the differences and similarities of the offers. This helps focus on facts rather than feelings.
Evaluating factors such as:
a. Nonrefundable earnest money
b. The amount of earnest money
c. Cash offers with no financial contingencies
d. Non contingent offers
e. Waiving inspections
f. Escalation clauses
g. Flexibility of closing date
h. Allowing seller to rent back for a specified period of time
i. Personal letters from perspective buyers
Who pays for closing costs. Motivated buyers may offer to pay some of the closing costs.
Secure a backup offer from the second choice buyer so if the first choice buyer backs out, you have another qualified buyer to step in.
Your relationship with the buyer’s Broker. Are they ethical, responsive, collaborative and possessing integrity?
The bottom line is that as the Seller’s representative, you want to make it as easy as possible for the seller to choose the offer that best meets their needs.