UGH! Multiple offers are my least favorite way to do business.
Every time I face multiple offers (which in this market is ALWAYS), I ask myself one question… WHO WINS?
Most people assume it’s the seller, but that’s not always the case. Sellers can face plenty of problems before closing.
They may get an offer way over their asking price, but that doesn’t mean it will close. And if the appraisal comes in under the agreed-upon price, things can get UGLY!
Therein lies the real job of the listing broker. When things get dicey, I have to step in and calm ruffled feathers.
Sometimes that means convincing the seller that this buyer is worth working with. Sometimes I need to talk them through the pros and cons of relisting the property and help them decide if the hassle of the relisting process is worth it to potentially get a better offer
Ideally, I try to work with the buyer’s agent to make sure the deal goes through, and everyone is happy. Everyone benefits when real estate agents work together with honest and direct communication. The best-case scenario is when the sale closes, and everyone is satisfied with the outcome.
Unfortunately, that doesn’t always happen – especially in today’s uber-competitive market. I never want buyers to overpay for a new home and find themselves facing a huge loss if the housing market tanks.
I know that buyers want to bring their best offer to the table once they’ve found their dream property, but there are some safeguards that are non-negotiable. I’m here to educate and advise my clients, and there are two rules that I always share:
- NEVER agree to waive financing, appraisal, or home inspection. You need to be well-informed before making one of the biggest purchases of your life!
- DO NOT offer to bring additional money to the table to make up the difference between the appraisal and the offer amount. The property is ONLY worth the appraisal amount- don’t overpay. (The only exception is if the buyer absolutely wants that property and ONLY that property, plans on being there for 10+ years, and has the extra cash)
The bottom line? Buying a house is stressful, and it’s a huge investment. Take your time and do your research and due diligence so you can be sure that you’re making the best decision for yourself and your family.
