In markets with high demand for real estate properties due to low inventories, such as New Jersey, receiving multiple offers on a property is commonplace. Such scenarios are caused by the number of prospective buyers exceeding the number of properties available on the market.
Multiple offers will leave a potential buyer with the challenging issue of competing with other parties. Some may even question whether it is worth the effort competing with other prospective buyers. You have to go toe-to-toe with others who are just as qualified and determined as you to close a deal on the property you liked.
For the seller, multiple offers are a welcome headache, the problem of every seller’s dreams. Multiple offers will initiate bidding wars on the property, which only increases a seller’s chances of making good profits from the sale. It gives the seller the flexibility to go through all the offers and pick the best deal.
- Accepting the offer that they find to be most favorable to them
- Counter all the offers received, allowing the buyers to prepare and table an improved offer with better terms and prices than their last one.
- Counter only the offer that came closest to the terms and price that the seller wants.
- Take into consideration the real value of the property.
- The highest offer may not be the best offer. Review the terms and conditions of each offer.
- A cash purchase will always be a lot smoother than a loan purchase.
- Have to fall back contingency plans in place.
- Review the closing period, prioritize the buyer with the best offer within the shortest time.
- Take a look at the extras in each offer.
- Consider revealing the offers you’ve received.
- Do not be too greedy.