What Happens if a Seller Receives Multiple Offers?

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.

What Happens if a Seller Receives Multiple Offers

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.

Final Thoughts

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.

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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

What Happens if a Seller Receives Multiple Offers?

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What Happens if a Wellington Florida Seller Receives Multiple Offers?
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What Happens if a Wellington Florida Seller Receives Multiple Offers?
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Multiple offers, something many seller's hope for, but every buyer dreads. So what happens if a seller receives multiple offers? Find out now!
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What Happens if a Seller Receives Multiple Offers? presented by Michelle Gibson, REALTOR

2 thoughts on “What Happens if a Seller Receives Multiple Offers?”

  1. Very good article that brought up good points. Here in Gilbert Arizona this last summer this market was brutal, representing a highly qualified buyers. It was common to have 5-14 offers within hours or the first couple of days. In some cases the sellers sat on the offers or specified in advance offers would be collected for a set period of time before they would be reviewed, so they could collect as many offers as possible.

    Your point to not solely focus on the sales price and sweeten the terms of your offer in other ways is wise advice.

    A seller has three major concerns: 1) is the buyer qualified and committed to closing escrow on time, 2.) will the property appraise or will I have to renegotiate the price and 3.) what is the buyer’s home inspector going to find and how much will it cost to make repairs.

    You learn at close of escrow how committed the buyer is. But a letter from the buyer stating why they are making their offer and their commitment to fulfilling the contract could help reduce seller anxiety about the closing.

    The comparable sales should tell the seller what the appraised value should come in at… or very close to it. Offering to waive the appraisal contingency will alleviate the seller’s concern about the appraisal.

    The last concern about cost of repairs could have been determined with a seller home inspection prior to the home being listed for sale. The buyer could offer to pay the first $500-$1000 of repairs required as a result of the home inspection findings.

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Michelle Gibson Wellington Florida REALTORMichelle Gibson of the Hansen Real Estate Group Inc is a full-time REALTOR who has been specializing in Wellington Florida real estate since 2001. This veteran to the real estate industry has expertise in technology, marketing and social media.

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