Though not as common as they were 10 years ago, multiple offers are far from unheard of in today’s market. And whenever I’m working with a buyer faced with the dreaded “we’ve got multiple offers” the question is always the same: “But do you REALLY think there are multiple offers?” Inevitably, they ask this. Every time. And inevitably when I say “Yes. I really do”, I get the same look of doubt.
Here is the thing: It does not serve a seller well for their agent to say there are multiple offers when there are not. The reason is primarily that buyers don’t like to be in multiple offer situations. And because of that, many of them will withdraw an offer when faced with the request to come with their “highest and best” offer. If an agent were to say a property had multiple offers when there were not, a seller could very well end up with NO offers. A lose/lose situation.
Finding yourself in a multiple offer situation is one of the first obstacles (or tackles, for those of you following along at home) some buyers may face at the beginning of a real estate transaction. Over the years, I have counseled many clients through this precarious scenario. So what do you do as a buyer if you find yourself in a multiple offer situation? First, determine what the property is worth to you. You should do this with the help of an experienced agent that can weigh in on what the realistic market value is. Next, understand that when you are asked for your highest and best, it almost always means it is your one opportunity to bring it. Breaking it right down for you, if you decide a property is worth $300,000 to you and you are willing and able to pay that much, this would probably not be the time to offer $290,000. You have to think in terms of what you are willing to give it up for.
Navigating through this process can be stressful and emotional. There are many factors at play when it comes to multiple offer situations. With a good agent by your side, you will be educated on what your options are. You will be able to confidently make an informed offer. And whether you win or lose on the bid at hand, you will know that it was the right thing for your budget in the current market. If you do everything right but still don’t win on the multiple offer house , it’s only because you haven’t found YOUR house yet. You’ll see : )