Fewer multi-offers are happening now compared to the spring market (this is perfectly normal), but they’re still occurring for desirable, competitively-priced properties.
Whether it’s a multiple-offer scenario or not, there are always different things to consider when writing an offer to make it more compelling for the seller to accept.
Of course, the price will likely be the most critical factor, but NOT the only one!
Let’s say I’m representing the seller and reviewing five offers. What are the most important factors to consider?
1. The price—of course
2. The REALTOR®—This is critically important from my point of view. Having a skilled, experienced agent on the other side of the transaction reduces 90% of my worry about a deal falling apart for whatever stupid reason. When this happens, it’s ALWAYS because the agent on the other side is inexperienced and unskilled and doesn’t know how to counsel their clients properly. There’s virtually no identifiable problem that two experienced, skilled agents can’t find a reasonable solution for.
3. The closing date—Are the buyers trying to work with the seller’s proposed closing (possession) date? If so, two points for them!
4. The deposit—A substantial deposit is more valuable than you might think. It demonstrates the buyer’s seriousness and ability to close. The timing of the deposit is also important. A deposit delivered within one day is always best.
5. The terms and conditions—Depending on the value and type of property, typical terms and conditions should be expected. But whenever I get an offer with all kinds of extra “weird” terms and conditions, I see multiple red flags!
What about unconditional offers? From a seller’s perspective, this eliminates almost all uncertainty. From the buyer’s perspective, I would never recommend writing an unconditional offer. That said, I will explain all the inherent risks and the potential upside and allow my buyers to make their own fully informed decision. In some cases, they may decide that the potential benefit outweighs the risk.
So, have I ever had a multiple-offer scenario where my seller accepted a lower price? Yes, numerous times, for many different reasons.
By the way, all the factors above are just as important, even if there’s only one offer. If I’m representing the buyer, I want to focus first and foremost on getting the best price, so I will try to make all the other components of the offer as simple as possible. If the seller gets the closing date they want, with a hefty deposit and quick dates for removing conditions, they’re going to be more flexible on the price in most cases.
Sometimes, buyers unwittingly pay thousands more for a property for no good reason other than that their agent lacks the experience to counsel them appropriately on writing a more compelling offer.
I’ve covered the basics here, but every scenario is different, and there are a thousand other tricks of the trade that can be employed to make your offer more compelling for the buyer to accept.
A skilled and experienced agent will be able to “read” each situation and provide you with the best possible advice on achieving your objectives.
Ted