What to Know if You Find Yourself in a Multiple Offer Situation
With COVID-19 still in the news, our offices have been doing our part to keep our clients safe in this very unique time. The one thing that is very interesting is the market activity; we are going through some of our busiest times in the company’s 35-year history here in the Comox Valley.
The activity is strong in the $400-$650,000 single-family home market, with many multiple offers happening. There was even one case of a home selling $100,000 over its list price. So if you're shopping in the mid-price range, be prepared to find the home you have picked has multiple offers.
Things to consider if you’re a buyer…
If there are multiple offers on the house you’ve put an offer on, discuss the procedure that will take place with your agent. Unfortunately, only one will be able to move forward in the purchase leaving a number of buyers feeling upset and frustrated. Please remember your buyer’s agent is working for you and they will be feeling your stress in the process. It’s a good idea to decide what you feel comfortable with paying for the house and what conditions you need or don’t need to put in the offer. It’s not only the price that is the key motivators for sellers (although this is usually the key point) but it can also be the completion date, size of the deposit, and the conditions in your offer that can make the difference.
It’s hard to leave emotion out of the process but if you can and are able to look at it as a business decision, it might be easier to move forward. Referring to the home as a house will be the first step and it will effectively help you decide what you want to pay for the house if you’re in a multiple offer situation.
Things to consider if you’re a seller…
If you price your home appropriately as a seller, you're very likely to see the benefit of having multiple offers on your home in this market. If you end up with multiple offers, you will need to have a predetermined time to review the offers with your listing agent. He or she will guide you through the offer looking at the price and the conditions of the offer. You might find an offer that has come in that is a bit lower but has no conditions, more attractive as the sale will be completed immediately. Sometimes, this is worth more than waiting for appraisals and inspections.
If you ever have questions of the process sit down and discuss with your agent or reach out to the agents managing broker if you need further clarification.
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