Just So You Know - Multiple Offers are Occuring
October 28, 2008
Believe it or not, this market is not just about sellers waiting for a buyer to make an offer, any offer. Counter offers and multiple offers are again part of the buying and selling process. Many agents and the buyers that they represent are experiencing frustration as they submit offers only to find that they are in a multiple offer situation. Seemingly there are buyers waiting for the latest bank owned property to come on the market. Banks, wanting to unload their non-performing assets, are putting properties on the market at seriously reduced prices. In the end, this seems to get the bank the highest possible price as potential buyers offer overbids.
A serious buyer needs to be willing to negotiate if given the opportunity by the seller.
Suppose you submit an offer for less than the asking price and the seller makes you a counter offer. While you may think that there may not be another offer, it is wisest to act as though another buyer will also be making an offer. Acting in a timely fashion may allow you to purchase at the best possible price. If you wait and that other buyer makes an offer, until you have signed the counter offer and your agent has returned it to the seller or the seller's agent, the seller can accept another offer and you have lost the opportunity to purchase the property. Counter offer forms published by the California Association of Realtors contain a clause that is clear about the sellers right to accept other offers until the seller has received back the counter offer unchanged and signed by the buyer.
Some bank owned properties are coming on the market at prices considerably below current market value for similar properties. Buyers who act promptly and who recognize value will benefit from acting quickly and reasonably. Selecting an agent who is available and who knows how negotiations work will also be an advantage in obtaining the best possible purchase price.
Believe it or not, this market is not just about sellers waiting for a buyer to make an offer, any offer. Counter offers and multiple offers are again part of the buying and selling process. Many agents and the buyers that they represent are experiencing frustration as they submit offers only to find that they are in a multiple offer situation. Seemingly there are buyers waiting for the latest bank owned property to come on the market. Banks, wanting to unload their non-performing assets, are putting properties on the market at seriously reduced prices. In the end, this seems to get the bank the highest possible price as potential buyers offer overbids.
A serious buyer needs to be willing to negotiate if given the opportunity by the seller.
Suppose you submit an offer for less than the asking price and the seller makes you a counter offer. While you may think that there may not be another offer, it is wisest to act as though another buyer will also be making an offer. Acting in a timely fashion may allow you to purchase at the best possible price. If you wait and that other buyer makes an offer, until you have signed the counter offer and your agent has returned it to the seller or the seller's agent, the seller can accept another offer and you have lost the opportunity to purchase the property. Counter offer forms published by the California Association of Realtors contain a clause that is clear about the sellers right to accept other offers until the seller has received back the counter offer unchanged and signed by the buyer.
Some bank owned properties are coming on the market at prices considerably below current market value for similar properties. Buyers who act promptly and who recognize value will benefit from acting quickly and reasonably. Selecting an agent who is available and who knows how negotiations work will also be an advantage in obtaining the best possible purchase price.
posted by shirley harry at 3:27 PM
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