Reviewing multiple offers can be one of the most frustrating processes in real estate if you are on the buying side. While there’s no hard and fast method for handling and completing the process, let me provide you with a simple way to look at the process so that you are better prepared.
When offer day arrives, the listing brokerage keeps track of the offers they receive throughout the day and the Sellers agent will call everyone who has made an offer to meet at a specific location and time to review the offer with the seller.
Should an agent not provide honest, full disclosure about the number of offers they have, there are very serious consequences. If an agent claims significantly more listings than there actually are, this could drive up the price of an offer. Should this deception be discovered, the buyer and seller can receive a mutual release from a contractual obligation, and the agent will face hefty fines. It’s not worth it and most agents will be truthful in their offers.
Since real estate is a business based largely on relationships, you can always ask for a list of the agents that represent the listings. While finding the agents might be a simple process, you won’t have access to the offer prices. There will be no opportunity to glimpse other offers and change yours to a more competitive one. Take heart, though. Not every first or highest offer is automatically accepted. Simply know your comparable pricing and go in with the best offer you can. Don’t attempt to hold back in anticipation of a second round. Doing so could cost you the property. Don’t bank on a second round of bidding, put your best offer on the table from the start.
In addition to a fair, competitive bid, you should also take steps to clearly outline favorable terms and conditions that appeal to the seller and listing agent. When you appear in person it always reflects best is you’re accompanied by a deposit cheque. That cheque might give you a slight advantage over a close bidder. Also, ask about the seller’s preferred closing date, then meet it or get as close to it as you possibly can. Making a seller wait for sixty days when they really want a three-week closing could be disastrous.
At the end of the day, the highest bidder is often pretty likely to win the bid. However a well-prepared second highest bidder with a deposit cheque in hand and a willingness to accommodate the seller’s closing date and other conditions often has a very good chance of edging out the competition and leveling the playing field.