What Sellers Need To Know About Multi-Offer Situations
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When a property is in high demand, the chances are that more than one buyer will make an offer on the property. This can result in a multi-offer situation in which you as the seller, can choose whichever offer you think is more desirable.
While all of this sounds fantastic (who wouldn't want multiple bids on their house?) there are some factors you should know about before selling.
Informing Prospective Buyers
Prospective buyers should be informed they are in a multi-offer situation, and this is often done by having them sign an acknowledgement of the multi-offer form. Your agent should be telling them to put their best offer forward because they may not have the ability to go back and make changes later.
Equally, if a buyer pulls out of a multi-offer leaving one interested buyer left to make an offer, that remaining buyer should be informed in case they want to review their offer before it is presented to you.
Being presented multi-offers by phone
If a written offer is provided in either hard copy or electronically, your agent can present the offer verbally to you. It’s not enough for them to make you generally aware of the terms of the offer, the explanation must be accurate, and they must convey enough detail for you to be adequately briefed.
Purchasers’ confusion over the process
Complaints can arise because potential buyers have not understood the process correctly and feel they have been treated unfairly. It is important that your agent provides information about the multi-offer process, and makes sure the potential buyers have understood this information.
There is often confusion around timeframes in a multi-offer process, especially when the potential buyer thought they were the only party interested in a property. Potential buyers may be suspicious about competing for last-minute interests in the property.
In the event you receive a large number of offers, the process can become a public auction. All parties will need to be advised, and auction conditions may need to be prepared and presented at short notice.
Selecting the Right Offer
Don’t forget that this is your choice, not your agent's. Remember what is important to you. Is it the highest Price? The sure thing with a cash offer? Or the easiest transition with the ideal closing date?
You will likely want a combination of all of the above, though one may be a more important consideration.
At the end of the day you need to be working with a real estate agent you trust 100%. You need to be sure they have your best interests at heart and are transparent with you about all the offers. If you have any questions about multi-offer deals, please send me an email. I'd be happy to discuss how we can navigate through them together.
At Knowledge Broker, our goal is to create an open-source of information for all our clients. At the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services, please give them our details using the contact information below.
JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
249 Avenue Road • Newmarket, ON L3Y 1N8