Multiple Offers-What To Watch Out For
I love multiple offers for a number of different reasons. First, we know there is value in the property if there are a bunch of buyers offering on it. If you offer on a property and there are other offers on it, or they come in after you offer, then you know at least you and somebody else sees the value in the home at the price it is for sale for. That is good, that means that your assessment was probably correct that the house you like is a good value. On the flip side if you are a seller and you get more then one offer on your home then you have more options to choose from.
You don't have to just work with the one offer, you might have four or five to work with and that gives you more options. Lastly, multiple offers almost always drives the price up. Like in the picture below, you can see the the property sold for more then it was listed for, which is really interesting because I had a client that offered on this home. We offered on it when nobody else was and the seller accepted our offer at 151k. That is like $9,000 below what it finally sold for.
Now we did our inspection and determined it just wasn't worth it because of some foundational issues, but the point is that somebody came back, at least one person did, they came back wrote on it, probably went into multiples, they got excited and that drove the price up. BOOM, the seller just got $9,000 more money in their pocket versus if we would have bought it. So the moral is don't be scared of multiples, but at the same time act with caution because things can get out of control. Please hit me up email or text if you have any questions, no pressure, no obligation. Just great information so you can make the best decision for you and your family.