A multiple offer situation is usually brought about when a very attractive listing hits the market and buyers recognize the value or it may just be luck like when a reasonably priced property gets the attention of more than one serious buyer.
Either way several offers may arrive simultaneously!
And the winner will be the one with the highest price, right? Wrong!
Prospective home buyers often do not realize an offer is more than the price.
When a seller hears an offer is on the table the first question is about price. While price is likely the most important consideration other things may influence a seller's decision on whether to accept the offer, reject the offer or counter the offer.
These "other things" can be important especially if there is more than one offer on the table.
Some of these other things include
- Closing date. The longer the time between contract and closing, the greater the chance things may fall apart.
- Financing. An offer that is dependent on the buyer getting financing may be less desirable than a similar cash offer (cash talks).
- "As Is" offers. An "as is" offer may be more attractive to a seller than one in which there is an included request for possible repairs. Of course even "as is" buyers will most often have the recommended property inspection.
- Type of financing. Depending on the property some kinds of financing add additional seller expenses. In a buyer's market most sellers are not going to make it an issue - usually. Of course if a property has big issues like AC/Heat, roof leak, plumbing problems, the FHA or VA appraisal may be a hurdle that could create challenges.
- Personal property requests. This is the case where a buyer will want the seller to throw in the washer and dryer or the huge flat screen and sound system in the family room.
When it comes to offers to purchase real estate it doesn't matter what you ask for as long as you are willing to accept the response regardless.