Multiple offers can be complicated for a Real Estate Broker. Pretty simple if all the offers are from other Real Estate Brokers, however can become difficult if some of the offers are from buyers without representation. This story has a simple message; work with a Real Estate Broker. I’ll tell you why:
I’ve listed a house and I receive an offer from a real estate Broker. I can see the full offer, however legally cannot disclose the details to anyone. Then I get a phone call from a buyer who has visited during an open house and would like to put in an offer. I explain to them that it’s best if they find their own Real Estate Broker to write it up for them, however they are quite insistent that I do it. I need their offer by that night when I present the first offer. I explain to them that I will have a hard time representing them to the fullest of my capabilities. The reason is that naturally I am an aggressive negotiator and like to council my clients 110% of what they are getting into. Knowing what the other offer is, creates a situation for me to really watch what I say and how I council. The buyer then will not get the best of me.
I am not alone. I have talked to many Real Estate Brokers who feel the same way. If I co-list, we will each represent the buyer and seller so they have someone negotiating on their behalf at full force.
In a multiple offer situation I often get asked by one of the agents who lost the deal if the buyers had their own representation or if I represented them. I would gain by double ending the deal. You can see how that could be awkward and some eyebrows raised if I represented the winner and all the others were represented by Brokers.
Here are some tips for the BUYER:
- The Broker has a legal obligation to inform all parties who have put in an offer, that there is more than one on the table.
- My advice is to make your offer the best one you can, you won’t get a second chance. This not only goes for price, but for occupancy date, financing and timelines. You want to make it as appealing as possible.
[tube]http://www.youtube.com/watch?v=50yUMSJOGRw [/tube]
- Offers are normally presented to the seller at the same time. The seller is under no obligation to consider, respond or counter your offer. Although, as common courtesy, I like to respond with something.
- Only because you put in a at asking price does not guarantee that your offer will be accepted. Other offers may be for above the asking price or may have more attractive conditions such as financing, or possession date, no building inspection, etc.
- If your offer is unsuccessful you may choose to make a backup offer which, if accepted, would come into effect should the accepted offer become null and void for any reason.
I added this article because I love real estate and educating people on the matter. If you would you like me to work for you, call me 514-402-8444 or EMAIL ME!
