How to Handle Multiple Offers Like a Pro
Multiple offers—exciting, right? They mean your listing is in demand, but they can also be overwhelming if you’re not prepared. Managing them well can help your seller get the best deal while keeping the process smooth and fair. Let’s break it down step by step.
Step 1: Prepare Your Seller in Advance
Before offers start rolling in, have a chat with your seller. Explain how multiple offers work, what to look for beyond just price, and how you’ll guide them through the process. That way, when the offers come in, they’ll feel confident making decisions.
Step 2: Set an Offer Deadline (If It Makes Sense)
To avoid a chaotic free-for-all, consider setting a deadline for offer submissions. This helps ensure that all buyers have a fair shot and that your seller isn’t pressured into accepting something prematurely.
Step 3: Keep Everyone in the Loop
It’s important to let buyers’ agents know there are multiple offers on the table— letting buyers’ agents know about multiple offers can create a sense of urgency, but be careful to follow local real estate laws and brokerage policies. Avoid disclosing specific offer details unless you have your seller’s explicit consent.
Step 4: Evaluate Offers Beyond Just Price
The highest offer isn’t always the best one. Here’s what to consider:
Financing: A cash offer might be more appealing than a higher financed offer with contingencies.
Contingencies: Fewer contingencies often mean a smoother deal.
Closing Timeline: Does the buyer’s schedule match the seller’s needs?
Earnest Money: A larger deposit shows commitment.
Buyer’s Motivation: A well-written offer letter or waived contingencies can indicate how serious a buyer is.
Escalation Clauses: Some buyers include clauses stating they’ll automatically outbid others up to a certain limit. Consider whether your seller wants to accept one outright or use it for leverage in negotiations.
Appraisal Gaps: If a buyer offers significantly over asking price, will they cover any gap if the home doesn’t appraise? Look for appraisal gap guarantees in the offer.
Buyer’s Lender Reputation: A pre-approval from a solid, well-known lender carries more weight than one from an unknown or online-only lender. Verify financials whenever possible.
Step 5: Use an Offer Comparison Sheet
When multiple offers come in, sellers can quickly feel overwhelmed. Creating an offer comparison sheet can help break things down. This sheet should include not only the purchase price but also important terms like contingencies, financing type, earnest money deposit, and closing timeline. It should also calculate the seller’s estimated net proceeds after factoring in closing costs, concessions, and other expenses. Sometimes, an offer that looks great on paper may not be as strong once all costs are considered. This tool ensures your seller makes a well-informed decision based on the actual financial outcome. SHOP TEMPLATE
Step 6: Counter, Accept, or Call for Highest and Best
Once you’ve reviewed the offers, you have a few options:
Accept the best offer as is.
Counter one or more offers to tweak terms.
Ask all buyers to submit their ‘highest and best’—this can sometimes bring in even better offers!
If there’s a strong offer but a minor concern, tailor a counteroffer rather than rejecting it outright. For example, if the price is good but the timeline doesn’t work, counter with a revised closing date.
Step 7: Stay Professional and Ethical
Follow all legal and ethical guidelines, and never disclose offer details without your seller’s permission. Keep things fair and transparent—your reputation depends on it!
Step 8: Guide Your Seller to a Confident Decision
Once the top offer is identified, walk your seller through the details and make sure they understand everything before signing. If there are any questions, don’t hesitate to loop in an attorney or broker.
Reading Between the Lines on Contingencies: Some contingencies are standard, but others could be red flags. For example, a long inspection period might mean the buyer is unsure about the home. Identify which contingencies are reasonable and which may indicate hesitation.
Seller’s Emotional Connection to the Home: If your seller is emotionally attached, they may be drawn to a buyer who writes a heartfelt letter. While emotions are valid, help them focus on the best financial and logistical fit.
Step 9: Keep Backup Offers in Play
Even if your seller accepts an offer, a backup offer can be a safety net in case the first deal falls through. Let serious buyers know they’re still in consideration and keep communication open.
Step 10: Communicate with the Other Buyers
Once a decision is made, let the other buyers’ agents know as soon as possible. A simple, professional message goes a long way in maintaining good relationships for future deals.
Remember
Handling multiple offers doesn’t have to be stressful. With the right approach—clear communication, strong ethical standards, and a strategic mindset—you can turn a high-demand listing into a huge win for your seller.
Reflection Questions
How confident do you feel in your ability to handle multiple offer situations? Reflect on areas where you feel confident and those you do not.
How do you typically approach educating your clients about multiple offers and helping them understand the intricacies involved?
How can you better understand your client’s goals and priorities during the multiple offer situation? What questions can you ask to gain deeper insights into their preferences?
What strategies can you employ to evaluate and compare offers effectively? How can you ensure that your clients receive a comprehensive analysis of their options?
Navigating multiple offers often requires a delicate balance of professionalism and emotional intelligence. Reflect on a time when emotions ran high during a multiple-offer situation. How did you manage both your own emotions and those of your clients? What strategies can you implement to further excel in maintaining a composed and empathetic demeanor?
