Inventory is Low in the South Florida Real Estate Market. What if You are a Buyer or Seller in a Multiple Offer Situation?
Real estate in South Florida remains tight with inventory continuing to be slim making it a challenge for buyers to not only find a home, but also to enter contract. On the other hand, sellers are more fortunate where they can sometimes receive many offers with some over the listing price.
So how do buyers create a strategy to beat out their competition? And how should sellers select the best offer? Here are some tips for buyers and sellers in a multiple offer situation.
Tips/Information for Buyers
- When sellers have multiple offers they have some options. They could accept the best offer, they could inform all parties that offers are “on the table” or they can counter offer one and put all others aside.
- There are advantages and disadvantages to multiple offer negotiations. Submitting a low offer may result in you purchasing the property at a lower than asking price. It also could mean another higher offer could be accepted instead of yours. A full price offer may result in paying more than you would have had to in order to secure a deal. Sometimes there can be multiple full price offers that sellers have to sort through.
- Listing agents may provide their professional advice or suggestions, but ultimately it is the seller who makes all final decisions.
- Understand that your buyer’s agent may have suggestions based on their past experiences. This is in no way a guarantee of how any seller will respond to your particular offer.
Tips/Information for Sellers
- There are options on how to handle the offers that you receive. You could accept the best one at the highest price, you could disclose to all interested parties that there are many offers and propose a “best and final” date or you can choose to counter offer just one of them.
- Understand that each option has its advantages and disadvantages. I can walk you through all of the potential scenarios and results for each and weigh your options.
- When and if you receive more than one offer I can help explain negotiating strategies to consider.
- Understand that your buyer’s agent may have advice which is based on past experiences. This is in no way a guarantee of how any seller will respond to your particular offer.
In conclusion, buyers and sellers need to accept that there will only be one offer that can be selected and that some buyers will be disappointed. Nothing can be done to remedy the actual loss for the losing buyers, but fair and honest communication throughout the process will make all feel as though they were treated fairly and had an equal opportunity.