You’ve found the perfect house, submitted your offer and then comes the call every buyer dreads: There are multiple offers. Now what?
Multiple-offer situations are more common than many buyers realize. In fact, there’s an old real estate saying that, just when a home has lingered on the market long enough for everyone to assume it’s overpriced, several buyers suddenly decide it’s the one they want.
Here’s what you need to know.
Contrary to popular belief, a seller is not legally required to issue a multiple counteroffer. While their real estate agent will often recommend asking for each buyer’s “highest and best” offer, the seller doesn’t have to do that. They can simply accept the offer they prefer without countering anyone else, and they are under no obligation to explain their decision.
If your offer isn’t accepted – or even countered – it doesn’t necessarily mean you did something wrong. Perhaps another offer had already been verbally negotiated, and the seller chose to honor that commitment. Sometimes the deciding factor isn’t price at all. A shorter escrow, fewer inspection contingencies, flexible timing, stronger financing or simply the buyer who presents the least amount of uncertainty can provide a seller with more peace of mind than a few extra dollars.
Details matter, too. An offer that includes requests inappropriate for the property, checks boxes that don’t apply or overlooks important mountain-specific items like septic systems, private wells or other specialty inspections can signal unfamiliarity with the local market. Those small details can influence a seller’s confidence in the transaction.
And then there are unusual requests. I once received a counteroffer asking my client to leave behind her antique doll collection because the buyer’s daughter had fallen in love with it during the showing. Unfortunately for that buyer, the seller’s daughter loved the collection even more. Rather than agree to the request, my client accepted a competing offer. It’s a good reminder that asking for personal property that isn’t included in the sale can sometimes cost you the house altogether.
One final point: Once the seller has chosen another offer, the conversation is over. Don’t contact the seller directly and don’t ask your agent to do it for you. The seller hired a listing agent to represent them and that agency relationship deserves to be respected. Sellers are under no obligation to explain why they selected another buyer, nor should they be put in the uncomfortable position of defending their decision. Your agent shouldn’t be trying to persuade the seller to change their mind after the fact, either. Real estate works best when everyone respects the process, the agency relationships and the seller’s right to choose the offer that best meets their needs.
Losing out on a home is disappointing, especially when you’ve already imagined yourself living there. But every transaction is different, and every seller has priorities that may never be fully visible to buyers. The best approach is to accept that your offer didn’t align with the seller’s goals, learn what you can from the experience and move forward. The right home – and the right opportunity – is still out there.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs, and the surrounding mountain communities. Reach her at (909) 442-1345 visit www.HomesInLakeArrowhead.com, and follow her on social media @TheresaGrantRealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
0 Comments