What Happens When There Are Multiple Offers in Real Estate?

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.

When a seller receives multiple offers for a property, they can take any of the following actions:

  • 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.

Here are some factors to take into consideration as a seller while dealing with multiple offers on your home sale:

  1. Take into consideration the real value of the property.
  2. The highest offer may not be the best offer. Review the terms and conditions of each offer.
  3. A cash purchase will always be a lot smoother than a loan purchase.
  4. Have to fall back contingency plans in place.
  5. Review the closing period, prioritize the buyer with the best offer within the shortest time.
  6. Take a look at the extras in each offer.
  7. Consider revealing the offers you’ve received.
  8. Do not be too greedy.
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    BuyingSellingInvestment Properties

    Home Buying In New York

    Buying Process in New York

    Acknowledge that you're ready to buy a home. In this post, we will discuss where and how to start.

    1. Pre-Approval Process

    It is time to figure out how much house you can afford and your monthly budget. It is time to contact a lender. A lender will ask you for the following:

    • 30 - 60 days of bank statements with all pages included (inclusive of blank and non-informative pages)
    • Tax Returns, typically two years
    • 4 to 8 weeks of pay stubs for proof of income
    • Statements showing assets such as stock portfolio, retirement investments (401k plan, IRA)

    These documents, along with your credit score, down payment, and income, will help a bank determine how much house you can truly afford.

    2. Find A Knowledgeable & Reliable Realtor

    Public house hunting websites' information is not 100% accurate. REALTORS get up to date listings from the MLS databases for a more accurate availability of houses.
    Once you have found your REALTOR, you will also be required to sign the New York State Disclosure Agreement. This document is NOT A CONTRACT. It is a state-required document that identifies the party that your REALTOR is working for; buyers' agent, sellers' agent, or dual disclosed agent.

    3. Visit Properties of Interest

    So now, you're pre-approved, you have picked out your REALTOR, and you're off to the races!

    Important Tip: always see a property in person to get a sense of the property and potential remodel capabilities.

    4. Submit an Offer on a Desired Property

    Your REALTOR will submit a document called A BINDER. This document means that you accept the offer and a meeting of the minds between both parties. This document will have your name(s), address where you currently live, contact number & email, as well as the offer price, total down payment monies, estimated closing date, and terms of the purchase. You will sign it as well as your REALTOR. It will then get scanned and emailed along with your PRE-APPROVAL, NYS Disclosure Statement, Proof of Funds (POF...This is a must).

    5. Schedule An Inspection

    This is an essential part of the process. A Licensed Inspector or Engineer needs to test appliances & utility systems. An Inspector needs to examine electrical receptacles, electrical panels, light switches, light fixtures to ensure that they're all in working order. An Inspector needs to inspect the pool, read the siding or roof, and review the land's grade surrounding the property. An Inspector may even be required to check for Lead Paint, Asbestos, Mold, or Foundation Issues.

    They come to your purchase property, take photos, take notes, test the functionality of things and compile a report for you, your agent, and the attorney to review. This report is forwarded to the other side for review. If repairs or alterations are needed, this is the time for the buying party to speak up. Assuming that everything can be agreed upon, this leads us to the next step.

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      6. Signing Contracts

      Once the inspection outcome is settled, you will be called into your attorney's office to sign a contract. You will hand over a down payment check (earnest money/good faith deposit), which will go into an escrow account (most likely of the seller's attorney), which will be used towards the property's purchase price. These documents then get sent over to the selling side. The seller receives called into their attorney's office, they sign the contracts, and voila, officially under contract!

      7. Behind the Scenes During the Process

      So you're under contract, fantastic! There are still tasks left to do. As a REALTOR, our job is to monitor the final steps in the transaction.

      8. Appraisal

      An appraisal is ordered by your lender, coordinated by your REALTOR & the seller's REALTOR. The appraiser reviews the property for size, space, location, and quality. They then compare properties to ensure that what you're spending is sensible.

      9. Loan Committment

      Once your property APPRAISES, and all is well, your lender will issue a COMMITMENT lender committing to loaning your money.

      10. Title

      The Title is essential as your attorney will coordinate a title search to ensure that the property you're buying has been transferred legally from party to party since the beginning of time.

      11. Homeowner's Insurance

      Homeowners Insurance: Before closing, you must PAY for a full INSURANCE year. You will provide this receipt to your lender as evidence.

      12. Final Walk-Through & Closing Date

      Once all of the above is complete, and both parties are ready to move forward and close, the attorneys will coordinate a closing date. Before the closing date (usually 24 hours before or the day of), you will visit the property to ensure that all appliances are still present, the house is not damaged, and that the sellers have begun packing their belongings.

      Get Your Key, Take Possession & Celebrate!

      Home Buying In New Jersey

      Buying Process in New Jersey

      Acknowledge that you're ready to buy a home. In this post, we will discuss where and how to start.

      1. Pre-Approval Process

      It is time to figure out how much house you can afford and what monthly payment you’re comfortable with. It is time to contact a lender. A lender will ask you for the following:

      • 30 - 60 days of bank statements with all pages included (including blank and non-informative pages).
      • Tax Returns...Usually two years.
        4 to 8 weeks of pay stubs for proof of income.
      • Statements showing assets such as stock portfolio, retirement investments (401k plan, IRA).

      These documents, along with your credit score, down payment monies, and income, will help a bank determine how much house you can truly afford.

      2. Find A Knowledgeable & Reliable Realtor

      Public house hunting websites' information is not 100% accurate. REALTORS get up to date listings from the MLS databases for a more accurate availability of houses. A realtor working as a Buyer’s Agent will help work for your best interest in negotiating the price as best as the market allows them to, research similar processes to help compare prices of recently sold properties (AKA COMPS), confirm data on the property, and provide up-to-date tax information. You will also be required to sign the CONSUMER INFORMATION STATEMENT. This document is NOT A CONTRACT. It is a state-required document that identifies the REALTOR party you’re working with treats as a fiduciary. You will also be required to sign the Attorney General’s Memorandum regarding discrimination.

      3. Visit Properties of Interest

      So now, you're pre-approved, you have picked out your REALTOR, and you're off to the races!

      Important Tip: always see a property in person to get a sense of the property and potential remodel capabilities.

      4. Submit an Offer on a Desired Property

      New Jersey REALTORS are permitted and required to submit a 13 Page Contract to purchase. This document means that you accept the offer and meet both parties' minds. Once signed by both parties, this contract is a VALID and ENFORCEABLE contract. This document will have your name(s), address where you currently live, contact number & email, as well as the offer price, total down payment monies, estimated closing date, and terms of the purchase. You will sign it as well as your REALTOR. It will then get scanned and emailed along with your PRE-APPROVAL, Consumer Information Statement (CIS), Attorney General’s Memorandum (AGM), Proof of Funds (POF...This is a must).

      5. Attorney Review

      In the State of New Jersey, you have the option of retaining an attorney. It would be pennywise, dollar foolish to skip this part as a REALTOR is most likely, not legal counsel. While an NJ Real Estate contract is a valid contract, you have the right to identify and contact an attorney of your choice to “REVIEW” the agreement. Attorney review is usually 3 to 5 business days. Sometimes it is longer, and sometimes it is shorter. During this process, the attorneys will hash out the terms, estimated closing date, and purchase terms. Once attorney review is completed, you’re officially under contract.

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      Fill out the form below and Ryan will get back to you as soon as possible.

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        6. Schedule An Inspection

        This is an essential part of the process. A Licensed Inspector or Engineer needs to test appliances & utility systems. An Inspector needs to examine electrical receptacles, electrical panels, light switches, light fixtures to ensure that they're all in working order. An Inspector needs to inspect the pool, read the siding or roof, and review the land's grade surrounding the property. An Inspector may even be required to check for Lead Paint, Asbestos, Mold, or Foundation Issues.

        They come to your purchase property, take photos, take notes, test the functionality of things and compile a report for you, your agent, and the attorney to review. This report is forwarded to the other side for review. If repairs or alterations are needed, this is the time for the buying party to speak up. Assuming that everything can be agreed upon, this leads us to the next step.

        7. Behind the Scenes During the Process

        So you're under contract, fantastic! There are still tasks left to do. As a REALTOR, our job is to monitor the final steps in the transaction.

        8. Appraisal

        An appraisal is ordered by your lender, coordinated by your REALTOR & the seller's REALTOR. The appraiser reviews the property for size, space, location, and quality. They then compare properties to ensure that what you're spending is sensible.

        9. Loan Committment

        Once your property APPRAISES, and all is well, your lender will issue a COMMITMENT lender committing to loaning your money.

        10. Title

        The Title is essential as your attorney will coordinate a title search to ensure that the property you're buying has been transferred legally from party to party since the beginning of time.

        11. Homeowner's Insurance

        Homeowners Insurance: Before closing, you must PAY for a full INSURANCE year. You will provide this receipt to your lender as evidence.

        12. Final Walk-Through & Closing Date

        Once all of the above is complete, and both parties are ready to move forward and close, the attorneys will coordinate a closing date. Before the closing date (usually 24 hours before or the day of), you will visit the property to ensure that all appliances are still present, the house is not damaged, and that the sellers have begun packing their belongings.

        Get Your Key, Take Possession & Celebrate!

        New Dorp, Staten Island Neighborhood 10306

        New Dorp is a large neighborhood located on the East Shore in Staten Island Expressway.  As per WIKIPEDIA ™, the area was founded in 1671 following the English resurveying the pre-existing Dutch settlement of Oude Dorp (now Old Town) and expanded the lots along the South Shore, which were then settled primarily by Dutch families.  The new lots became known as Nieuwe Dorp (meaning “New Village”) in contrast with Oude Dorp.  It eventually became anglicized as New Dorp.

        New Dorp is an area of Staten Island that has undergone lots of change over the years.  Some numerous shops and restaurants have popped up over the years.  Between New Dorp Lane and Hylan Blvd, there is nothing that you cannot find to eat.  One of the most convenient aspects of New Dorp is that the Staten Island Rail Way services it by the MTA.  Miller Field is also in the neighborhood, which used to be the old “Vanderbilt Farm.”

        New Dorp is not too far from the local Staten Island Beaches. You have Midland Beach and South Beach that overlook Brooklyn. The boardwalk is approximately 2.5 miles long, which many people frequent to ride bikes, jog, and exercise.

        New Dorp, STATEN ISLAND

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        Emerson Hill, Staten Island Neighborhood 10304

        Emerson Hill is a small hillside neighborhood right along the Staten Island Expressway. There are several beautiful estates and mansions in this section of Staten Island. As per WIKIPEDIA ™, the area named for Judge William Emerson, who was the oldest brother of Ralph Waldo Emerson, who lived with his wife, Susan, and children, William, Haven, and Charles, in a long brown shingle house known as “The Snuggery.” Another interesting fact is that two large mock Tudor homes at the end of Longfellow Ave used as Casa Corleone for the filming of The Godfather.

        This neighborhood, located in the hills, is secluded from the rest of the borough. There are only a handful of roads that can get you to this area—some of the homes gated with lots of privacy. If an exclusive, private and luxurious neighborhood is what you’re looking for, this is one of the areas which should be on your list!

        You will see incredible views of lower New York Bay as well as the Verrazano Narrow’s Bridge from some of these properties.

        EMERSON HILL, STATEN ISLAND

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