Imagine you've just stumbled upon your dream house that ticks all the boxes. The only problem is, you're not the only one who thinks so. In fact, there are 3 other buyers who are convinced it's their dream home as well. Dealing with multiple offers might seem daunting and a bit overwhelming, but knowing the ins and outs of the process and the right strategies can make all the difference.

Understanding Multiple Offers

What It Means

A multiple offers situation occurs when more than one buyer is interested in purchasing the same property and submits an offer to the seller.

It’s Not An Auction

Despite the competitive nature, this process is not an auction. It operates under the rules of a private treaty, where the sale terms are negotiated between the buyer and the seller.

Presentation of Offers

In these scenarios, the agent collects all offers and presents them to the seller at the same time.

Final Chance

Once the agent presents the offers to the owner, typically, there's no further opportunity to adjust your offer.

Put Your Best Foot Forward

In this situation, your offer should be your absolute highest and best. It's about finding that sweet spot where, even if you miss out on the property, although you are not happy, you are satisfied that you put forward your best price and terms. However, be sure to base your offer on logic and not emotion so you don’t commit to something you can’t afford.

The Agent Will Guide You

While agents can offer some direction on where your offer should be, they can’t reveal the specifics of what other offers buyers have already put in. It might be a bit frustrating not to know every detail, but the key here is to ask as many questions as you can. The agent understands the nuances of these situations and can provide invaluable advice. Rely on their expertise, and don't shy away from seeking clarity—this will help you understand how to position your bid effectively.

Acknowledgment

You'll likely need to sign a multiple offer disclosure form, indicating your awareness of the situation. This isn't just a formality; it's about ensuring transparency and a fair, open negotiation process. By signing this form, you acknowledge that you're not the only interested party, which can help you move forward with confidence, knowing you've done everything within your power to make your dream home yours. This acknowledgment is crucial, as it prepares you to make well-informed decisions throughout the bidding process.

How To Improve Your Chance

Your Best Offer

This is a competitive situation, so first and foremost, ensure that you submit your highest and best offer. Think about how you'd feel if you missed out on the property by $10,000, $20,000 or $50,000. You need to be comfortable knowing that you absolutely couldn't pay anymore.

Simplicity In Conditions

Don’t overcomplicate your conditions. It is fairly standard to have working order, structural and termite inspection conditions and most offers will contain at least those three clauses. Avoid putting anything, particularly complicated or confusing that could weaken your offer.

Cash Vs. Finance

A cash offer is attractive, but a solid finance clause, backed by broker verification, can be equally compelling. If you’re putting a finance clause on the contract then it can be helpful to offer your broker’s contact details to the agent so they can get in touch with them and confirm your position.

Understanding The Seller's Goals

Make sure you have a conversation with the agent to understand what the seller values beyond just the price. Sometimes, factors like settlement dates hold considerable weight.

Entering a multiple offers situation can be daunting. However, with the right approach and a clear understanding of how to strategically place your offer, you can give yourself the best chance of securing your dream home. Have any questions? Get in touch with DUET and we can help guide you through the process.