Although not the norm, it is not unusual in today’s market to see buyers fighting over the same home. This is termed a “multiple offer” situation, or “multiples” in real estate agent lingo. Regardless what the media says about it being a buyers market, bidding wars do happen and seem to be taking place more frequently.
By definition, “multiples” occurs when more than one buyer is attempting to purchase the same home at the same time. This happens not only on homes that are new to the market, but also to homes that have been sitting for a long time. I’ve personally seen homes listed for over a year that ended up having multiple bidders.
The important point of this article is that a multiple offer situation can happen at any time and will present additional challenges. Regardless if you are a buyer or seller, these transactions can be much more stressful. On the buy side, not only do you have to negotiate with the seller, but you also have another buyer to worry about. Strategy is extremely important in this situation and one wrong move could lose you the home of your dreams.
As a seller, while most dream of having multiple bidders for their home, it isn’t as great as it seems. Buyers are often put out at being in a competitive bidding situation and if you don’t play things right, you risk alienating all of your buyers and could end up with none.
The winning party sometimes ends up having buyers remorse, feeling they were pressured to pay more than they wanted. Some end up backing out during the inspection period because of this. Additionally, the losing party ends up very resentful of the process. They are often so angry that they rarely come back in the event that the home comes back on the market.
The fact is, in a multiple offer situation, someone losses and it creates a lot of ill will. Whether justified or not, emotions will run higher than normal here. That is why we like to avoid them when representing our buyer clients.
We tell our buyers that if they like a particular home, odds are high that some other buyers will feel the same way about it. So, don’t hesitate to make an offer quickly or risk either losing the home or having to get into a bidding war to get it.
When it comes to multiples, understand that they do exist in all price points and could happen at any time. Remember, nice homes that are priced well don’t last very long in any market. Unfortunately, we tell our clients this but sometimes they end up learning the hard way.
The above information is compliments of The Schuman Team, Amy and Dan, of Howard Hanna Real Estate Services.
They can be reached at 216-346-3235 or 216-403-9189 or via email, firstname.lastname@example.org or email@example.com.
The Schumans service the following Cleveland area suburbs: Bainbridge, Bay Village, Beachwood, Bentleyville, Chagrin Falls, Cleveland Heights, Gates Mills, Highland Heights, Hunting Valley, Lakewood, Lyndhurst, Mayfield Heights, Mayfield Village, Moreland Hills, Oakwood Village, Orange, Pepper Pike, Shaker Heights, Solon, South Euclid, University Heights, Westlake, Woodmere.
Multiple Offers More Common Than You Think is the property of The Schuman Team and may not be duplicated or used without their written consent.