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Multiple Offers
May 28th, 2014 10:30 AM

With high demand and falling inventories, sellers are in a strong position in many Florida markets.  A new listing might generate one or more offers within a short timeframe.  But sellers are not always sure how to evaluate multiple offers and make a well-informed decision.  Is it better to take an all-cash offer at a lower price or accept a higher offer from a buyer who needs financing to close? 

In these situations, sellers usually give permission to disclose the facts to all parties and encourage each party to put in their highest and best offer.  But it's important to remember that price isn't everything.  Terms, such as all cash, and conditions, such as "as-is" are relevant as well.

Buyers should also be educated about the local market so they can think about their options in advance.   They might decide to submit a higher initial offer rather than aim lower and wait for a counteroffer from the seller.  Since many sellers have an emotional attachment to a home, a buyer could write a heartfelt letter explaining their reasons for really wanting the home.  It is the seller who is in the driver's seat, making the decision about which offer he or she chooses to accept.  And by law, a seller's agent is required to present all offers unless otherwise directed by the seller.

Once a seller accepts a buyers best offer, will the home's value be as high as the contract price?  Even all cash buyers may want an appraisal done, and that can pose a risk to the seller.  Therefore, the home should always be priced at fair market value, and even offers above the asking price must be in line with a potential appraisal.

The market has now changed to a "sellers market."  It is the seller who makes the decisions about multiple offers; it is the buyer who makes decisions about counter-offers.  The best decision is to come to a mutual agreement where everyone wins. 

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Posted by Barbara Doeringer on May 28th, 2014 10:30 AMPost a Comment

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