Multiple offers, something many sellers hope for, but every buyer dreads. So what happens if a seller receives multiple offers? It all depends on how the seller would like to handle the situation. Here are the 3 most common ways multiple offer situations are handled.
Highest and Best
Some sellers will request “highest and best,” which means every buyer who submitted an offer has the opportunity to resubmit their highest and best offer by a certain day and time. Notice the seller is requesting for highest and BEST, not just the highest price? One of the most common mistakes buyers make in a multiple offer situation is only increasing their price. But not changing any of the other terms like; escrow deposit, types of contingencies, contingency periods or closing date. Home buyers should never expect a full price offer to win in a multiple offer situation because there is more to an offer than price.
Counter One Offer
In my experience, not all sellers will request highest and best. Some prefer to counter one offer at a time. A few years ago I presented multiple offers to a seller. All of the purchase prices were within range of one another, but the secondary terms were night and day. This particular seller decided to counter the only cash offer they had on the table. The cash buyer accepted their counteroffer immediately. Had the seller requested highest and best the cash buyer may have never changed their offer or they may have lost them altogether. While it’s rare, not all buyers want to be involved in a “bidding war” and may walk away.
Accept an Offer
Just because a seller receives multiple offers does not mean they are required to counter an offer(s). They don’t need to request highest and best or even disclose they have multiple offers in hand either. Some sellers will accept one of the offers as written because it’s the terms they want. In a hot real estate market some buyers submit their highest and best offer from the start. They don’t want to lose the home and want to show the seller they really want it.
A buyer I recently worked with was in this position. They saw a lot of homes and liked some of them, but when they viewed a new listing they feel in love. Not wanting to lose the house they submitted their highest and best offer. They were hoping the seller wouldn’t want to look at or wait for other offers and it worked.
In a competitive real estate market a home buyer should never assume a seller will accept or counter their offer especially if they received multiple offers, they may just reject it. If you need assistance with purchasing a home put our expertise to work for you and let us walk you through the entire buying process, from start to finish.
Please consider spreading the word and sharing; What Happens if a Seller Receives Multiple Offers?
— Michelle Gibson (@WellingtonHomez) January 4, 2019
Additional Real Estate Advice from Top Professionals
- How to Help a Home Buyer Win in a Multiple Offer Situation – Kyle Hiscock provides 7 tips to help buyers win when they’re in a multiple offer situation.
- How to Handle a Bidding Wars on My Home – Bill Gassett shares with sellers the different ways they can handle multiple offers on their home.
About the Author
The above real estate article “What Happens if a Seller Receives Multiple Offers?” was written by Michelle Gibson of Wellington Florida Real Estate. Specializing in residential real estate since 2001 in Wellington and the surrounding area. Not only does Michelle assist buyers and sellers, she assists landlords and tenants too. She would love to share her expertise and guide you through the entire real estate process.
We service the following areas; Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres and more. If you are considering selling your home, we welcome the opportunity to work with you and list your home with a top Realtor in Wellington Florida