Articles

Need more advice on preparing to buy or sell a home? Call me today. I'll be glad to help.

How Do Multiple Offers Really Work?

Screen-Shot-2015-02-02-at-3.08.01-PMScreen Shot 2015-02-02 at 3.04.59 PM

REAL ESTATE WATCH

 by AL REX, CPA & Realtor

 

Multiple offers are not always a trend that we see in San Diego County. But they do tend to occur more often when there is a lower inventory of homes for sale and higher buyer demand, especially if the home is desirable and priced competitively. Even though the inventory of homes on the market has increased since February, it is still a “hot market” for sellers.

If you’re selling your home and receive multiple offers (more than one offer at the same time), this puts you in a very good position to get the maximum value that the market is willing to bear. Why? Because, in most cases, your realtor will inform each party that a multiple offer situation exists and ask them to each submit their “highest and best offer” by a given deadline. Since each buyer does not know the contents of the other offers, usually one or two of the offers will come in strong and stand out above the rest.

The seller and realtor then review all offers. Consideration is given to all aspects of the offers including the purchase price, terms (all cash or financed), amount of down payment, type of loan (conventional, FHA, VA), financial strength of the buyer, whether the buyer plans to occupy the property or use it as a rental, whether the offer is contingent on the sale of an existing home, etc. The seller then selects what he/she feels is the best overall offer. It is possible that one of the offers not selected may be placed in a “back-up” position, which is advantageous to the seller, in the event the first buyer can’t perform.

Now what if you’re on the buyer’s side of multiple offers? How do you compete without overpaying? Well, this is radically different from the seller’s side, and I have a multi-step process that I coach my buyer clients through if we find ourselves on the other end of multiple offers. In fact, these steps and tips could encompass another entire article, so if you are thinking about buying a home, contact me directly, and I’ll talk you through the varied scenarios.

Al Rex has been a top selling realtor in Carlsbad for the past ten years, where he and his family reside. Visit his website at www.carlsbadhousefinder.com to get updated MLS information, or to find a floor plan for your own home. 

Al Rex
CPA & Realtor • BRE# 01377312
7030 Avenida Encinas, Suite 100, Carlsbad, CA 92011
760-473-8572
Al@AlRexRealty.com

Leave a Reply

Your email address will not be published. Required fields are marked *