How to Handle Multiple Offers (when buying a home)

Multiple offers happen in two situations:

1. The listing agent underpriced the home considerably, because he or she did not understand the local values.

2. Limited listing inventory can create a seller’s market and inflate value in the short term.

If you are in the first situation, you should have your agent establish the true value of the house. Then you need to decide what the home is truly worth to you.

Try not to think of multiple offer situations as bidding wars. You will typically have only one opportunity to put forth your highest and best price in a multiple offer situation.

The perfect offer is the one price that makes you happy if you win and feel as though you did your best if your offer is not accepted. Try to visualize your agent giving you the news that your offer was not accepted. If you see yourself saying, “I should have bid $1,000 more,” then now is the time to do it. Don’t let “We should have...” happen to you.

If you find yourself in the second situation on a particular house, then it may be best to walk away from that one unless it is your dream home and neighborhood market conditions are favorable for the next three to five years.

Interested in more, essential home buyer information?  Download The Smart Home Buyer now.