In real estate, a multiple offer situation has the potential to be tense for both the seller and competing buyers, particularly in the case of a bidding war. If you’re trying to buy a house, understanding both party’s options can help you to communicate, be respectful, and navigate the situation successfully. Here’s a helpful guide to managing multiple offers from the lens of both the seller and the buyer.

A Guide to Multiple Offer Situations

How a Seller Will Likely Approach the Situation

As every seller’s situation will be different, there is no one-size-fits-all solution for approaching multiple offers. It largely depends on what’s most important to the seller, whether that’s monetary gain, timeliness, lack of contingencies, or a combination thereof. While price is often a major consideration, it’s not always everything, particularly if the highest bid comes with some unfavorable contingencies, like significant structural changes to the home.

If price is the primary factor, however, a seller will typically accept the highest offer. Sometimes, the seller will inform each party of the other’s competing offer to elicit the highest possible offers from each side.

How Buyers Can Improve Their Offers

While you can’t control the seller’s decision, there are a number ways to make your offer more attractive. For one, secure a mortgage pre-approval to demonstrate to the seller that you’re serious about making a purchase. Pre-approval letters often carry almost as much weight as a mortgage commitment, as they provide complete transparency into your finances.

You should also commit to a large down payment in cash, if possible. In the real estate world, cash can signal your financial strength as a buyer. Sellers can anticipate a speedier sale without needing to wait out an appraisal process or wonder if a lender will come through.

It’s also wise to cut down or waive your list of contingencies to eliminate work on the seller’s part. Highly motivated buyers sometimes decide to forego the home inspection to relieve the seller of the burden of home repairs.

If you’re concerned about navigating a multiple offer situation when buying a house, put your trust in Priority Properties, Inc - Cheri Long in Aurora, CO. Since 1993, Cheri Long has been providing expert real estate services to buyers and sellers throughout the Denver Metro area. Clients can depend on her no-pressure sales technique and stellar record. To inquire about houses for sale, give her a call at (720) 505-3893 or visit her online for more information.