You Have More Than One Offer On Your Home...Now What do You do?
Although we have not seen nearly as many multiple offer situations as in the past, it 
does
still happen and may happen again this spring as the weather warms up
and if mortgage rates stay attractive. I was involved in one just
yesterday.You might be quite excited to get one but then you may be wondering what to do.
As
a seller in Ohio, if you are notified that there are 2 offers on your
property, here is what you should remember: You as the seller are the
only one authorized to disclose the existence of those offers to the
parties involved. In other words it is up to you, the seller, to decide
if you want each of those 2 buyers to know that there is another offer on the table. It is not up to your agent to make this decision.
You
may be asking yourself why you wouldn't disclose the existence of the
offers to both parties. If you do, there is a risk, (admittedly a small
one) that both buyers will rescind their offers as they may not want to
compete for the house.
If
you have 2 offers on your home, one may be significantly better than
the other one and so you may want to immediately dismiss the less
desirable offer and choose to work with the more desirable one, so as
not to risk losing the better one. This is exactly how one of my seller
clients proceeded a few years ago when he received 2 offers on his
home, and one was 35K lower than the other one. He chose to proceed
with the better offer and went forward with the closing. The agent who
did not get the deal was unhappy but I was not representing the agent,
I was representing the seller.
Conversely,
disclosing the existence of the offers to all parties may work in your
favor as both parties may increase their offers on your home.
Some
sellers are tempted to counter both offers which is highly inadvisable
as both buyers may accept and now you have sold your home to 2 buyers!
These are but a few of the scenarios that could come about with multiple bids.
As a seller it is very exciting to receive 2 offers on your home...what a compliment! But proceed with caution and make sure you hire an agent with some experience in this area.If there is any uncertainty at all, consult your attorney. For some question and answers on multiple bids by Peg Ritenour visit the Ohio Association of Realtors
If you would like information on real estate in your area, please contact Barb Szabo. I'd be delighted to speak with you.