What should buyers, sellers expect during multiple offer situations?

Low inventory in our market area brings on multiple offers in several price points.

So you’ve been told it’s a seller’s market and you’re ready to sell. Your agent should discuss with you the market and what to expect. You have a house that will be attractive to a large segment of the buyer pool. Great! The price it right and you will receive multiple offers.

So here you are a seller, faced with multiple offers. As Realtors, we have customary practices to make it as fair as possible to those

who wish to buy. The highest and best offer is the one we take. The seller’s agent delivers notification to all buyers’ agents that there are multiple offers and they will need to have their highest and best in by 5 p.m. the following day.

What does the buyer do? They really want that house! They can put forth their absolute highest and best offer and let the chips fall as they may. Or they can stand at their first offer with the caveat that they will go $1,000 over the highest and best offer the seller receives up to a certain amount.

This strategy prevents the buyer from bidding against themselves, but unfortunately, nothing is a sure thing. You have to have your ducks in a row and work hard at what you want and hopefully win the bid.

Conversely, if you’re a buyer in a market segment that is slow moving, is there room to negotiate? Yes, no, maybe. It will depend on the seller’s motivation, the buyer’s ability, and recently sold comparable housing.

For both the buyer and seller, it is a stressful time. Ideally, they both will have realistic ideals in mind and when an offer comes in that feels right or a house comes on market that’s worth what a specific buyer can pay, it’s go time.

Ideally, once an agreement is made, all parties keep lines of communication open and work toward the common goal. Despite the competitive format, buying and selling homes is a collaborative team effort and whether you’re a seller or a buyer; once a deal is made that’s when the work really begins to get to that exchange of keys.