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Multiple Offers ?

What would you do if you are working with the buyer and you informed the listing agent that you were going to be bringing them an offer on their listing. The listing agent tells you they have another offer. I inform my buyers of the other offer. I ask them if they really want the house then we should structure our offer as follows: In the additional provisions write in something like this 1. Buyer will pay $1,000 over the next best offer the seller has but not to exceed x amount of dollars The x amount of dollars is where you write the top amount your buyers are not willing to go over. In other words there is an upper limit to which the buyers are not going to exceed. Next time you are faced with another offer try it, it works, it has worked for my buyers on more than one occasion. www.MontroseHomeConnection.com

Posted by Alan Brown on 03/21/2008 10:18 PM

Comments (8)

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8 Comments on Multiple Offers ?

Hi, Alan. It's worked for us, too, but it ticks off the agent who wrote the other offer.

03/21/2008 10:22 PM

by Karen Webster...Grand Rapids, MI Realtor (5 Star Real Estate, Grand Rapids MI)

Yes Alan, that does work. However, I have gotten those and my seller just counters back at just below their top price. That works also!

03/21/2008 10:38 PM

by Tigard Oregon Real Estate >> Wayne B. Pruner, GRI (Oregon First)

I think this is a great idea, I have a buyer who is looking for a lender owned home and only wants the best. Unfortunately, those often get sold in the first week and have multiple offers. I will be using this method next time. Thanks.

03/21/2008 10:45 PM

by Ulises Romo (PRO-formance Realty Concepts)

Alan,

You are so right that this type of offer works all the time. I received one of these type of offers when I had multiple offers on a home listed. At first, it took me by surprise! But as I began to think on the offer I realize what a great way to afford the "bidding war" that goes along with multiple offers. What I got was a sold price over the listing price. What you need to keep in mine when handling this type of offer is you MUST give everyone the opportunity to give their best and highest offer. The other agents do get upset. The upper limit must be considered because buyers are not going to exceed a certain amount. When I got to the closing I was told that the buyer was an attorney. It is so true that every transaction is not the same. This type of offer worked in that partculiar sell and will work on more than one occasion if put to use. I plan to try it myself when I am told "I have another offer" when working with my buyer. Your buyer will get the home of their dreams without a doubt.

03/21/2008 10:45 PM

by Wanda Turner, GRI Hoover, Alabama (RE/MAX First Choice)

Alan,

What amazes me is that this market is so bad, there are over 38K homes/condo's etc. for sale in Broward County and every time I call for showing instructions, I get the same line, "Oh, I've gotten so many call's and all the buyer's have cash, just so you know I'm sure I'll have an offer by the time you show the property!" HUH! Amazing...

I know the point of your blog post here...but agent beware...I don't believe half of the agent's have other offer's like some say. I mean if they did (and I show lot's of properties) we wouldn't be in this mess!

03/21/2008 11:02 PM

by Karen Monsour,REALTOR® Broward,Palm Beach,Miami/Dade! 954-464-4194 anytime! (Coldwell Banker Fort Lauderdale Beach)

Hi Alan. Thanks for sharing the great tip! Keep them coming.

03/22/2008 12:18 AM

by Vincent Martinez (Prudential Network of Homes)

Hi Alan, Our Multiple Listing Service has these Escalation Addendum to the Purchase and Sale forms on the website. It is really good--it has blanks to fill in at the bottom of the page for the calculations for the purchase price. They were used a great deal when our market was hot.

03/22/2008 05:29 PM

by Leslie Bloss, Seattle Real Estate Professional (REALTY EXECUTIVES/BRIO )

Well, I know your read my post on this scenerio, so I do it all the time in Sellers Market or where the buyer absolutely loves the house.

03/26/2008 06:44 PM

by Missy Caulk Ann Arbor Realtor Ann Arbor Real Estate (Keller Williams Ann Arbor)