Some home buyers and sellers are getting tired of multiple offers. In theory multiple offers are nice but it isn’t that simple. Only one person can buy the house. Multiple offers are a good problem for sellers to have but can multiply the stress for all parties.
Home owners will put their home on the market on a Tuesday and say they want “highest and best offers” by noon on Friday. Sometimes that back fires and they end up with no offers, because buyers don’t always want to play that game. Sellers have told me that they don’t want to play games either. They just want a great offer.
When an offer comes in with the asking price or better and all of the terms the seller wants there really isn’t any reason to hang on to it and try to get more offers. Here are a few of the things that can go wrong when a good offer is used to get a better offer:
- First buyer withdraws offer and buys another house.
- Winning offer is for an amount that the buyer regrets and as a result he/she/they either back out or after the inspection they ask for numerous repairs or a sizable price reduction.
- Buyers lender has the home appraised and it comes in at a value less than the buyer offered. Buyer backs out.
The most likely outcome of in any of the above scenarios is having to put the home back on the market and starting all over. I am not trying to suggest that getting multiple offers is always bad because it isn’t but sometimes that first offer really is the best and all that is needed. It is after all a seller’s market.
Also see seller expectations sky rocket.