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What will you do in a multiple offer situation?

multiple-offers

With the strong activity and low supply we’re seeing in the Twin Cities, it is important for sellers to discuss how multiple offers will be handled BEFORE they come in.

When discussing this with your agent, here are a few important questions to consider:

Will we disclose the multiple offer situation to all parties?
This is a decision for the Seller but most of the time it is in the Seller’s best interest to inform all parties of the multiple offer situation.  Many brokerages make this their standard practice in listing agreements.

Will we set an offer deadline or review offers as they come in?
For a hot property, three or more offers may come in and if they do, are they going to be reviewed separately as they are received or all at once at a pre-determined time?  Typically it makes more sense to review them all at once as it makes it easier to compare the offers.  It also makes it clear to all parties what is happening and when.  The downside is that if the offer deadline is too far from the first offer submitted, that buyer may become frustrated or feel taken advantage of.

Will the listing agent keep track of interested parties?
Agents who have shown the property may have provided feedback via phone or email that indicates their buyer is interested but not ready to make an offer.  Some agents will keep good records on these conversations while other agents may not.

Will the listing agent contact previously interested parties to inform them of offer(s) submitted?
A quick call or email by the listing agent to these buyer agents may procure one or more additional offers for your home.  Additional offers provide a better opportunity to select the best overall offer but it is important not to create a long delay in replying to the offers already submitted.

Will the Seller permit the Buyer Agent(s) to present their offers?
In a multiple offer situation you may have one or more of the agents want to present their offer in person to ensure their client’s bid is put in the best light possible.  Typically an offer presentation is allowed when requested however the Seller does have a right to refuse the offer presentation if the refusal is provided to the Listing Agent in writing.

What terms are most important?
Is the purchase price the most important item?  What about closing date, inspection contingencies and the buyer’s financing details?  Not every home that receives an acceptable offer will see that sale close, so sometimes the offer with the highest price loses to another offer that has better terms overall.

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TwinCitiesRealEstateBlog.com is not a Multiple Listing Service MLS, nor does it offer MLS access.
This website is a service of Aaron Dickinson of Edina Realty, a broker Participant of the Regional Multiple Listing Service of Minnesota, Inc.