Evan Smeenge | March 9, 2022
Multiple offers are, in this day-and-age, the norm. A property that comes on the market tends to have multiple offers within days, if not hours. A recent experience and example of this happened with our buyers. They made an offer on a property while 27 other people also made an offer on the same property. So obviously, 26 other people lost out on another property – and don’t forget, you can assume you are up against at least 26 other people for similar properties in the area. Many buyers are going through this 3, 4, 5 even 10 times during their purchasing process. This builds resentment, anxiety and the feeling of being fed up.
THIS IS OKAY.
As we’ve told you already multiple times, it is an extremely tumultuous market for buyers right now due to the seemingly continuous decline of inventory and the fear of interest rate hikes. The emotions that come with buying, or selling can be fierce. But you have to be able to roll with the punches. For buyers, this includes multiple offer situations and losing deals. And for sellers, this includes negative feedback about the home you love.
Your agent, whomever that may be, won’t and shouldn’t have all the answers. They should be able to however, sit with you in your frustration and anxiety and help guide you through the emotional rollercoasters. Keep in mind, those agents are still human, so they may not do it perfectly every time. But a good agent can make you feel better about any situation.
Now, let’s run through a scenario on how to approach a multi-offer situation and then follow up with how to bounce back from a lost battle below:
We’ve found a house that you are in love with. You are excited to make an offer. I, your agent first get in touch with the listing agent to notify them of our intentions, and from there, we’d likely find out if there are multiple offers.
The first step I will do is determine the value range. I won't give you one price, but will give you the bottom end of the value and the absolute top end of the value. Over my top end (which sometimes you’ll need to go) is where you start losing the gains you will have over your ownership period.
Once we have a target value range, and this is slightly dependent on how busy the home was when we saw it, will determine what my advice is. I may say I think $10K over is fine, $50K, etc.
Another important piece of the multiple offer puzzle is the terms. Most often you’ll want to give the seller the choice of when they close, and the offer will most of the time need to be as-is. Post-closing possession is being seen more and more this year. Last year we were offering it and people were really excited to see it, now it’s almost expected. Other terms could be waived like an inspection and/or appraisal gap addendum.
After the offer – you sit, and wait, with the expectation you have a deadline for the best and final. If you are offering before information about a best and final request comes out, expect to have to send a best and final offer a day or two after you sent your initial offer.
Now, if you have the unfortunate event of losing a battle, take the day and take a step back from the search because your agent should have the search under control (they will send you really important new listings). When you do start your search again, think about the experiences you will inevitably have in whichever house you are lucky enough to get into. The meals you’re going to cook in the kitchen, the parties you are going to have with friends and family, the first steps of a baby, etc. These are the things you want to focus on when you’re trying to look for a house. Not necessarily how many deals you’ve lost out on or the “perfect” homes you thought you would get. Remember, a house is more than the actual structure. It’s the experiences and love that’s within it that’s more important. And what’s meant to be will be.
EXPERTISE. SERVICE. INTEGRITY.
With an exceptional real estate experience, The Smeenge Group aims to make transactions fun, inviting, and seamless for everyone involved. We had cultivated a deep understanding of the buying, selling, and local marketing processes that guarantee a positive experience for every one of our clients.