How Sellers Handle Multiple Home Offers Successfully

How Sellers Handle Multiple Home Offers

Getting multiple offers on a home is the best-case scenario for a seller. It probably means you’ve done a few things correctly, like marketing and hosting an open house. 

When you’ve got a handful of interested buyers trying to make offers, it’s a nice feeling. Your home is obviously showing value and potential. Assuming you’re seeing reasonable offers, what’s the best way to make the most profit? 

Some home sellers could think, “Why not start a bidding war?” However, it’s not as easy as telling would-be buyers to pay more. Receiving multiple home offers takes careful assessment. The terms, contingencies, and buyers will vary with each one, so we’ll explain how to handle this situation.

Understand multiple offers - Photo via Canva

Strategy to Handle Multiple Home Offers

When a home seller receives multiple offers, there’s a strategy that they can use. With a realtor, the seller will decide the best offer on the table.

The seller and realtor will look at:

  • The offer price
  • Money down
  • Terms
  • Settlement date
  • Contingencies 
  • Mortgage approval

It’s not as simple as finding the highest offer. For example, you could face contingencies, late settlement dates, or other terms that don’t sit well. This means you’ll have to look at the entire offer and not focus on individual aspects.

At the end of some evaluation, you and your realtor should have found the best offer.

Multiple offers can work in your favor  - Photo via Canva

What You Can Do With Multiple Home Offers

With the best offer in hand, you’ve got another choice to make. 

  • Take the offer: Some realtors may advise their clients to take the best offer, not seeing any possible improvement. If you decide not to take the offer and make a counteroffer, you risk alienating the potential buyer in some cases.
  • Counter the best offer: If you want the buyer to agree to certain terms or adjustments to the offer, you need to make a counteroffer. You’d usually reject the other offers that don’t reach your desired standard, which introduces an element of risk. You may burn bridges with the buyers you rejected, plus the one you choose to counter. 
  • Make multiple counters offers: Instead of countering just one of the offers, some home sellers decide to do something called a “multiple counter”. These offers don’t have to be identical, but there is a catch. If one of the buyers accepts your counter offer and sends it back signed, the offer becomes binding after the seller signs it. If you make a multiple counter, your realtor will supply the proper forms for your area.
  • Hold other offers but counter one offer: To avoid losing all of your potential buyers, you could counter a single one and hold the others. Your real estate agent will speak with the interested buyers and let them know you’re considering an offer. You’ll have another serious look at the offers from them if the best one doesn’t pan out.
  • Ask buyers to make bids: This may be the way some sellers imagine multiple home offers. Your realtor may go to the potential buyers and ask them to make their best offer, considering the other parties involved. This can produce higher offers from a buyer who truly wants this property, but it can backfire too. 

While this may seem like a profitable approach, it can backfire. What happens if the buyers already made their highest offer? Some may also avoid bidding against other buyers based on principle. For these reasons, the bidding war approach could alienate buyers.

You don’t have to wait until multiple home offers come in to choose a strategy. Discuss what you should do if you get multiple home offers with your realtor beforehand and weigh options. Every property and market is different and some strategies may perform better than others.

Best Practices for Multiple Home Offers 

You and your realtor will approach multiple offers and negotiate using industry best practices.

Deep evaluation: It shouldn’t need to be said, but let’s say it anyway. Your realtor should be evaluating each offer very carefully, for your benefit. These offers are complex sometimes, so you shouldn’t expect, nor want, rapid decisions.

Prompt communication: Staying in regular contact benefits both sides of the real estate transaction. Buyers who are interested enough to make an offer want to know where they stand. Sellers want to give this to them so that their interest and commitment don’t wane. 

Honest communication: When you and your realtor are looking at multiple home offers, honesty and transparency are vital. This fairness is an important part of the Realtor Code of Ethics and buyers will expect it. Preferential treatment, unfair manipulation, and underhand tactics are not in the skillset of any top-performing realtor.

Are You Ready for Multiple Home Offers?

You might be here because offers are already piling up. This could put you in a great spot to get exactly what you want. 

If you plan to sell the property soon, do you know how to attract multiple home offers? We do.

In different counties of California, you need a team with proven success and a transparent approach. It’s important to see a realtor's record of success and know how your home will follow that trend. 

We invite you to take a look at The Jamison Team’s testimonials, our awards, and guarantees

Afterward, we’re available for a pressure-free online discussion or over the phone.

More Questions? Follow Up With Us!

If you have more questions about what to expect from the markets around the Bay Area, don’t be afraid to reach out to us today. Our experts are experienced in all property types and the entire San Francisco Bay Area, and we can help you to find what you need to know today.

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