Seller Tip - Multiple Offers
In our highly active market, multiple offers are becoming common. This is when Sellers may find that more than one buyer is interested in a property.
This is a competing offer situation and creates unique conditions in a real estate transaction. Both sellers and buyers need to consider how to respond when presented with a competing offer situation. Working closely with your realtor will ensure that you understand the process.
The seller’s realtor is required to disclose the number of competing offers to all buyers who have submitted a written offer. However, the terms and conditions of each offer are confidential to the seller and their broker or salesperson.
Working with a Realtor
The seller’s realtor represents the interests of the seller in the transaction. The decisions about how offers are presented and responded to, as well as which offer is accepted, are made by the seller.
The buyer’s realtor represents the interests of the buyer in the transaction. The buyer makes the final decisions related to their offer, including the important decision of whether or not they want to participate in a competing offer situation.
In some situations, the realtor will represent the interests of both seller and buyer or multiple buyers. Consumers should seek guidance from their realtor if this situation arises.
Tips for sellers
A seller facing competing offers has to consider how they want to deal with the situation. The seller can decide to: accept the best offer; negotiate with one buyer and reject all other offers; negotiate with one buyer and advise other buyers that their offers are being set aside while the seller negotiates; or reject all offers.
Even in a competing offer situation, buyers have other options and may choose not to continue to participate. A seller may attempt to negotiate only to find out that it was the best offer the buyer could present. In the meantime, other buyers have found new properties they are interested in.
The seller’s realtor can provide advice and guidance, ensuring that the obligations and the options available are understood.
Important Factors to consider:
1. Offer Price
2. Financing
3. Closing Dates
If you have further questions please feel free to ask.