Multiple offers! So what happens now…
As the market starts to get busier, it is common for a property to attract multiple offers. This is great for sellers, as they are more likely to receive offers that aligns with their price expectations. Multiple offer situations occur when more than one prospective buyer tables an offer on a property simultaneously.
When a seller finds themselves in the envious position of having more than one offer on their property for sale, there is no right or wrong procedure for dealing with this.
Nor is there any law in WA as to how this should be handled. It is up to the seller, in consultation with their agent, to decide how to move forward. Whilst it’s good practice for agents to inform all their interested buyers that it’s a multiple offer situation and give them the chance to confirm their best and final offer before dealing with them, there’s no obligation for them to do so. It is always a seller’s right to assume any offer received is the buyer’s best offer.
If you’ve placed an offer on the home and the seller has several offers to consider, they will probably ask the agent to inform you that there are multiple offers. You will then be given the opportunity to reconsider and present your best offer.
Alternatively, the seller might decide to only negotiate with one of the offers. Their decision isn’t always the highest price, sometimes the least complicated offer is the more attractive.
(above material is referenced from the Real-Estate Institute of Western Australia, REIWA. https://reiwa.com.au/information/buyers/multiple-offers-and-the-48-hour-clause)
It’s an exciting dilemma to have but how do you decide which offer to choose? Let’s have a look at some of the conditions on a contract that may influence a seller’s decision.
- Price – the highest bidder will get your attention but don’t automatically sign over your property without thoroughly reviewing the contract with your agent. Is the offer cash or does the buyer need a mortgage? A buyer with pre-approved finance is stronger than one without approval. And remember cash is still king!
- What about conditions – Those conditions that, if not met, are a get out clause for the buyer. Mortgage approval, sale of a home, value appraisal, building and pest inspections… The fewer there are, the less likely the buyer will pull out of the contract.
- Length of settlement – what timescale suits you best? You may find you are willing to accept a lower price to move more quickly.
- Deposit – A larger deposit is often seen by sellers as a more secure guarantee that the purchase will go ahead, and this peace of mind could lead them to accept an offer over that of a fellow buyer who has less cash on hand.
Don’t forget, as your agent, I am there to help you weigh up the pros and cons of each offer so you can sign the contract that’s best for you.
Have you had any experience with multiple offers when buying or selling a home? If so, leave a comment below and let me know how it went!
