By Tamra Haase
In our current real estate market, you are probably hearing and seeing this in the real estate craziness.
In some situations, sellers will have several competing purchase offers to consider. Sellers have several ways to deal with multiple offers. Sellers can accept the “best” offer; they can inform all potential purchasers that other offers are “on the table”; they can “counter” one offer while putting the other offers to the side awaiting a decision on the counteroffer; or they can “counter” one offer and reject the others. While the listing broker can offer suggestions and advice, decisions about how offers will be presented – and dealt with – are made by the seller – not by the listing broker.
There are advantages and disadvantages to the various negotiating strategies you can employ in multiple offer negotiations. A low initial offer may result in buying the property you desire for less than the listed price – or it may result in another buyer’s higher offer being accepted. On the other hand, a full price offer may result in paying more than the seller might have required. In some cases there can be several full price offers competing for the seller’s attention – and acceptance. Your buyer-representative will explain the pros and cons of these (and possibly other) negotiating strategies. The decisions, however, are yours, the sellers to make. We are seeing a lot of creativity with buyers with their offers.
What Does the Word “Contingency” Mean in a Real Estate Listing?
Contingency means there is something the buyer has to do for the process to move forward. A few examples could be the buyer is waiting to get approved for the loan, or they are waiting for their property inspections, or the buyer is waiting for their current home to sell. When you get an offer with a contingency, talk it over with your realtor to make sure it works for you. If the market is hot, keep in mind another offer without a contingency may be just around the corner.
