We are seeing multiple offers on some properties. There are no rules set in stone for how sellers and their agents deal with this situation. Sometimes they will just accept the highest offer, or they will counter the highest offer on price or other terms. Another strategy that is very common is when the agent tells all the agents to consult with their buyers and come back with their highest and best offer within a day or two. Another option is where the seller counters multiple offers all at the same time. They can counter all the buyers back at the same terms, or different terms, and they don’t have to disclose to you what those terms are. It also means that if you accept the seller’s terms, you are NOT officially in contract with the seller until they accept your acceptance. It’s important that you verify if the counter-offer you receive from the seller is the regular counter (SCO) or is it the multiple counter-offer form (SMCO).
One strategy you can discuss with your agent is whether you want to accept the terms of the counter-offer, and then hope that the other buyers DON’T accept, which would mean it’s likely yours will be accepted OR do you want to improve your terms somehow? That way in case all the other buyers accept the seller’s terms that your offer may stand out. Of course, the seller could come back with another round of multiple counter-offers at that point and keep this going until they are ready to accept an offer. However, the seller is running the risk that some or all of the buyers simply walk away and look for another home. I’ve seen that happen where buyers get frustrated at the process and give up. Sometimes they ALL do that and the seller is now scrambling to get one of them back in the fold.
If you have questions about real estate, call me at (925) 240-MOVE (6683). Voted “Best of Brentwood” multiple times. To search the MLS for free, go to: www.SharpHomesOnline.com. Sharp Realty. #01245186