Competing Offers In This Market – What?

On September 15, 2011, in Sellers, by David Monsour

The last few times I was in a competing offer situation I was representing one of the buyers.  This time around I was working for the seller which from a stress standpoint is a far better position to be in.  It goes something like this.  Receive two offers – look at both – send them back – ask for best offer – sign best offer – done deal.  Well that is what it used to look like.  Given the current market few buyers aren’t willing to get into “bidding wars” over properties because it defeats the purpose of what we all know is a strong buyers market.

Last night the sellers and I discussed the best option and decided it made sense to sign the offer we were happy with and hold onto it until we received the other offer.  Our goal was to circumvent another meeting and more forward with an acceptable contract just in case the other offer never surfaced.  Around 11 pm I got a text from the buyer agent of offer #1 stating that her buyers would be withdrawing their offer due the competing situation.  Now the tables have turned.  I’m expecting to have another offer but in reality I could no offers.  Somehow the most ideal of situation for the seller had  turned into a potentially terrible situation.  The buyers market managed to rear it’s head even in the best of times.

So I had the night to sleep on it.  When I woke up I contacted the sellers.  We had to make a decision did we choose the first offer that we were happy with (very clean) or did we take the risk of losing offer #1 and wait to see if we even get offer #2.  In the current market it simply wasn’t  risk worth taking.  A solid offer with few contingencies and a solid value is a winner all day.  We won’t ever know what offer #2 would have looked like but at the end of the day the home is under contract with a quality buyer agent and a great buyer.

It’s very important to get a great offer but it’s also very crucial that the buyer can obtain financing and get to settlement.

Comments are closed.