Multiple offers, identical offers

Door

I know I have written about this before but it keeps happening. Sometimes when there are multiple offers on a home the highest offers or all of the offers are identical or close to exactly the same.

If you are a home seller do not be surprised if you get multiple offers and if all are lower than the asking price. It is even possible to get two identical offers that are less than the asking price.

Sometimes multiple offers are over the asking price. That is what home sellers hope for but is especially challenging for buyers. Usually buyers will not be told what is in the other offers. It kind of feels like gambling.

Three offers on a home are really all you need. That way there may be a tie breaker.

Sometimes sellers will not negotiate. If they don’t like the offers they will try to get more offers. I am not sure how that works for them. Negotiating with the buyers makes more sense and is probably faster too.

Occasionally buyers win in multiple offer situations by adding an odd an random number of dollars onto the end of their offer. For instance instead of offering 200K an offer could be for 200,890, or 210,000.78. 199K looks like a lot less than the other two numbers.

There is more to a good offer than money. A higher downpayment means that an offer is more likely to close. More earnest money means that the buyer is serious. A quickly closing date may be desirable if the sellers have already moved on. An offer where the buyers are paying their own closing costs is usually better too.

Some buyers are skipping the inspection contingency. Please do not skip the inspection. The inspection protects buyers and sellers. I strongly encourage buyers to have a complete home inspection.

 

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One Reply to “Multiple offers, identical offers”

  1. We are in Texas, and our inspection contingency is call the option period where the buyers pay a small fee ($100-$200) to the seller for normally 7 days to do their inspections. During this period, they can terminate the contract for any reason, but they will lose their $200 option fee. You can choose on the offer whether this is credited back to the buyer at closing or not which it usually is. To make our offers more attractive, you can have shorter days and a higher option fee, but we are seeing great success with allowing the sellers to keep it regardless. It shows you are serious about the house, but we say something like “take the wife or husband out for a nice steak dinner on us. :)”

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