Fact or Fiction: Multiple Offers Edition
Updated: Apr 22, 2021
If you're a real estate agent in 2021, you've probably run into multiple offer situations that make you feel like this in anticipation for your buyers:
While we can never take the risk out of real estate, we can help you feel more confident in navigating today's multiple offer market. Below are the top 5 things to keep in mind during a multiple offer market. Reach out to our team to get a class for your Maine/New Hampshire brokerage or sign up for one of our multiple offer classes here to learn more!
1. Fact or Fiction? A seller is required by law to treat a buyer's offer as confidential.
Whether you said fact or fiction, you are correct! Here's why: in New Hampshire, this is FICTION. Only the real estate licensees are required to keep the offer confidential unless otherwise agreed upon by all parties. In Maine, you'd be correct if you said FACT! Even the seller is required to treat a buyer's offer as confidential there.
2. Fact or Fiction? It is the agent's duty to determine how to respond to multiple offers.
We hope you got this one right on your first attempt. The answer is FICTION. It is the seller's duty to determine how to respond to any offers. The seller can respond by accepting, rejecting, counteroffering, or walking away.
3. Fact or Fiction? The seller is not required to accept the highest priced offer.
This is FACT- the seller is not required to accept the highest priced offer. But it sure would make things easier sometimes! There are factors including contingencies, closing date, and many others that could lead a seller to choose an offer that isn't priced the highest.
4. Fact or Fiction? It is legal for a buyer to make an offer that does not include a fixed purchase price.
FACT! We are seeing more and more escalation clauses these days that do not include a fixed purchase price. However, escalation clauses should always be explained to both buyer and seller to ensure the consumer understands the content of the escalation clauses and how they work.
5. Fact or Fiction? In a multiple offer situation, you should wait until you have all of the offers before presenting to the seller.
Thankfully, this one is FICTION! In New Hampshire, the law says offers should be presented promptly. In Maine, the law says offers should be presented without delay. In addition, both states require that ALL offers be presented. This includes good ones, bad ones, verbal ones and written ones. Present all of them promptly!