I’ve had a several questions asking about how the best way to handle getting offers on a property. First, congratulations! That’s an exciting day when you get that offer on your property and hopefully it’s not some low-ball goof that’s kicking the tires! Let me start off with saying, when you price a property right and make it based on sales comparable, what properties similar have sold for, properties will sell. But it should be in line with what the market will support. Otherwise, a property will sit on the market for a while and you’ll end up getting less for the property that if you would list it in line at the start!
But the best way when you get multiple offers, for this example two offers, on your property is not to counter both offers. If you do, you could possibly be selling the property to both people and you’ll be in a big mess! If neither offer is acceptable, you can reject both offers and invite them to submit another offer. A seller can reject one offer and counter the other offer. When you counter, you’re negotiating with that party and engaging in a power of acceptance to create a binding contract.
I have seen sellers accept lower offers on a property because they’re cash and can close quicker thank one that was higher but was subject to finance and had more conditions. Remember, the seller has the right to accept whichever offer they choose.
As Realtors, we can’t tell other agents what other offers are or terms of their contract. What I will tell agents that I’m working with is to “Make their buyer’s Highest and Best Offer.” That doesn’t mean a seller will take any of them. I have had agents come back and tell me their client would have gone higher. Well then, they should have listened better when I told them to make their “highest and best offer.” Because they didn’t make that clear to their client, they just cost their client the property they wanted. Does this put a buyer in an awkward position, for certain it does. They’re in a high-pressure position where they can’t use the power of negotiating back and forth. And some buyers will back out of the process because they don’t want to be in a ‘bidding war.’ Just depends on how badly they want the property. A property in a desirable area or where there is a shortage of supply, that very well may be how things happen.