Sometimes there will be multiple buyers interested in the same property for sale. The seller may receive more than one offer to purchase. This is called a multiple offer situation, and whether you’re a seller receiving the offers, or a buyer making one of the offers, there are different ways to proceed.
Discuss your options with your real estate professional before proceeding.
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In multiple offer situations, it’s the seller who determines what process will be followed.
When there are multiple offers on your property, your real estate professional should:
- immediately tell you of the multiple offer situation
- explain the choices you have and strategies available for offer presentation
- recommend you look at each offer before making a decision
- advise you of the buyers’ options and indicate that buyers may, and often do, remove their offer in a multiple offer situation
- inform you it is your choice whether to disclose the multiple offer situation to the buyers
- NOT disclose a multiple offer situation without your consent
- follow your lawful instructions
- try to present all offers in the same time frame
- discuss with you any commission adjustments that may be in certain offers, and whether you wish to share this information with all other buyer representatives
- continue to present all offers to you up to the end date of a previous offer or to the end of the seller representation agreement
When there are multiple offers on a property on which you have submitted an offer to purchase, your real estate professional will:
- tell you of the multiple offer situation (if they know)
- advise you of the seller’s options
- attempt to personally attend the offer presentations
- advise you of YOUR options, including:
- increasing the offer prior to presentation.
- leaving the offer as it is.
- withdrawing the offer.
- reconsidering the fixtures, chattels, terms and conditions of the offer.
- advise on other considerations that could improve your position including:
- a term or condition that will compel the seller to deal with the offer at the time of presentation or face withdrawal
- a requirement that the seller not disclose the price and terms to any other buyer or face withdrawal
Multiple offer situations aren’t uncommon, especially in a hot market. If you are in such a market, to save time (and possibly get your offer read first), you, as a buyer can:
- consider how much higher in price you are willing to go with your offer should the need arise
- consider which, if any, terms or conditions you are willing to remove from your offer, and which you would remove first, should the need arise
- consider your willingness to change the possession date to one that is more favourable to the seller, should the need arise
Your ability to quickly decide on your course of action could be the difference between your offer being accepted or rejected by a seller with multiple offers.