4 Huge Buyer Misconceptions About Multiple Offers

A majority of homebuyers across the country are finding themselves in multiple offer situations. This is a tough position to be in and many aren’t sure what to do. Should they submit their “highest and best” offer? Should they offer full price or more? Should they submit an offer with the expectation the seller will counter it? What happens when there are multiple offers on a house?

Unfortunately, there is no multiple-offer playbook. Every multiple offer situation will be different and how the seller decides to handle multiple offers will differ too. There are also a lot of misconceptions buyers have about multiple offer situations, which they need to know and understand. Below we discuss the top 4 buyer misconceptions about multiple offer situations.

4 Multiple Offer Misconceptions

1. Multiple Offer Notification
Expecting to be notified that the seller received multiple offers is one of the biggest buyer misconceptions. It’s the seller’s prerogative if they want to disclose how many offers they have received. While notifying all parties there are multiple offers on the table can payoff it can also backfire. Not all buyers want to be in a “bidding war” and the buyer who planned on submitting the best offer may bow out. In that case, the seller just lost out. This is one of the many reasons why a seller might not disclose they have multiple offers.

Buyers in hot markets need to anticipate and expect to be competing against other buyers. They need to write their offer accordingly and have no regrets. No regrets they offered too much or too little. What terms will help them sleep at night, win or lose? That’s the offer they need to submit.

2. Counter Offers
A buyer should never assume a seller is going to counter their offer when they have multiple offers in hand. This is another one of the biggest buyer misconceptions. Some sellers are receiving 20 offers and odds are they already have several strong offers. Therefore, there is no need for them to counter inferior offers or any offers for that matter.

So when a buyer wants to “try” a lower offer price or additional contingencies they need to understand a seller isn’t obligated to counter their offer. This is another buyer misconception about multiple offers. It’s exactly why buyers should write an offer with zero expectation of receiving a counteroffer.

There are a lot of buyer misconceptions swirling around about multiple offers and here are 4 things buyers should never expect if they land in one. #homebuyer #realestate Click to Tweet

3. Full Price Offers Lose
While the offer price is a deciding factor for a lot of sellers it’s usually not the deciding factor. When a seller receives multiple offers odds are good they’ll receive many offers for full price or more. This will leave them examining secondary terms. Terms like contingencies and contingency periods. If the buyer is obtaining financing who the lender is may play a role as well.

So if a buyer needs a 5-day inspection period they shouldn’t ask for 10 days. If their closing date is flexible they should find out when the sellers prefer to close. This should be done prior to submitting an offer. Sometimes simply asking questions prior to submitting an offer can give the buyer a leg up against the competition. Expecting a full-price offer to win in a multiple-offer situation is another one of the many buyer misconceptions.

4. Sellers Won’t Wait
Time is of the essence in real estate, even more so in a competitive market. Buyers and agents alike need to act quickly when homes are flying off the market faster than they’re coming on. With these types of market conditions, a buyer should never expect a seller to wait around from them.

A seller isn’t going to wait around for them to submit an offer. They’re not going to wait for an updated pre-approval letter. They aren’t going to wait for a buyer’s parents to view the home before they submit an offer. Nor are they going to wait for you to get a quote for homeowners insurance or renovations you want to make.

Buyers need to be ready, willing, and able to view a property and submit an offer at the drop of a dime. Expecting a seller to wait is another one of the biggest buyer misconceptions.

Final Thoughts

Multiple offer situations can be stressful and in some cases leave a buyer feeling hopeless. However, if a buyer sets their expectations accordingly and avoids these buyer misconceptions they’ll be one step closer to achieving homeownership. It just might not happen as quickly as they were hoping, but need to hang in there and not give up.

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There are a lot of buyer misconceptions swirling around about multiple offers and here are 4 things buyers should never expect if they land in one. #homebuyer #realestate Click to Tweet

Popular Multiple Offer Questions

Can a Realtor tell you what other offers are? Generally, a Realtor can provide information about multiple offers on a property. However, the extent of the information they can disclose may depend on the specific circumstances and legal regulations governing real estate transactions in the relevant jurisdiction. In some cases, Realtors may be able to share general details, such as the number of offers received or whether there are competing bids. However, they typically cannot reveal specific details about the other offers, such as the exact amount or terms, without the consent of the other parties involved.

Should buyers make offers on multiple homes at once in Florida? Whether buyers should make offers on multiple homes at once depends on their individual circumstances and preferences. Making offers on multiple homes can increase the chances of securing a property in a competitive market, especially if there is a shortage of available homes or if the buyer has specific requirements.

However, it’s important to consider the practicality and potential risks involved. Buyers should have a clear understanding of their financial capabilities, as making multiple offers simultaneously could result in multiple accepted offers and potential financial strain. Ultimately, buyers should consult with their Realtor and consider their personal situation before deciding whether to make offers on multiple homes at once.

How quickly should a buyer make an offer on a home? The speed at which a buyer should make an offer on a home depends on various factors, including market conditions, the buyer’s level of interest, and their financial readiness. In a competitive market where homes sell quickly, it is often advisable to act swiftly and submit an offer asap. This may involve conducting thorough research, visiting the property, and consulting with a Realtor to determine a reasonable and competitive offer price.

However, it’s crucial not to rush the decision without proper due diligence. Buyers should ensure they have a comprehensive understanding of the property, consider any necessary inspections or contingencies, and evaluate their financial capacity before making an offer. Balancing speed and careful consideration is key to making a timely and informed decision.

Should buyers avoid making an offer when the seller received multiple offers? Buyers should not necessarily avoid making an offer when the seller has received multiple offers. While it may be a more competitive situation, it doesn’t mean that making an offer is futile. Buyers can still submit a competitive offer that aligns with their budget and preferences. Assuming they have to offer full price or more is another one of the many buyer misconceptions.

It’s essential to consider factors such as the buyer’s level of interest in the property, their financial capacity, and the advice of their Realtor. Making an offer allows buyers to stay in the running and potentially negotiate or present their case if other offers fall through. Every situation is unique, so it’s crucial for buyers to assess their position and make an informed decision based on their circumstances and the dynamics of the specific real estate market.

About the Author

Top Wellington Realtor, Michelle Gibson, wrote: “4 Huge Buyer Misconceptions About Multiple Offers”

Michelle has been specializing in residential real estate since 2001 throughout Wellington Florida and the surrounding area. Whether you’re looking to buy, sell, or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today.

Areas of service include Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres, and more.

4 Huge Buyer Misconceptions About Multiple Offers