Today multiple offers are the norm. If you see a nice place, chances are that you will be in this situation. It amazes me that some agents have no experince with them.
One of my LOFTS just got in escrow last week and we had 3 offers.
This is was the scenario:
Listing Price $550,000.
1st offer: $450,000
2nd offer: $480,000
3rd offer: $525,000
The seller was not greed and we countered all of them at $530,000 and some other specific terms to each offer.
The buyer that offered $525,000 signed the offer and we had a deal.
The other two came back at $500k and $515k.
One of the agents that did not get the LOFT got upset and said I should have called him and asked if he wanted to raise his offer. He must not be very experinced with multiple offers.
Once the counter is out and there are others competing with you, the first buyer that returns the counter signed gets the deal. There are no second chances in this game.
If you get a counter like that don’t waste time. Time is of eseence in Real Estate.
The buyer probably lost the place, because his agent was inexperience.
TIPS on Multiple offers:
1) Get an agent that knows what to do.
2) Write a letter to the seller. Sometimes its not just numbers, feelings and emotions count.
3) Put as much money down as you can, if you dont have it, bid higher.
4) Get an agent that has good reputation and relationships, his dealings with the listing agent can make or break the deal.
5) Your agent needs to be the listing agents new best friend.
6) Don’t believe on agents that promisse you a pocket listing or out of the market deal. This does not exist unless you are overpaying anyway. Real Estate is a bidding war and no seller is going to leave money on the table to sell it to you unless she is your Mom.
7) Act fast, the best places go on the first 3 days.
8) Have all your paperwork ready. Don’t even start looking without it.
9) Be prepared to lower contingency periods or even remove them (this can be risky).