Preparing for Multiple Offers – The Pros and Cons of an Offer Review Date
Buyers are out and demand for homes is high! When it is time to list your property and if multiple offers are expected, there will be a number of issues and strategy for us to consider. One of the primary issues is whether or not to have an offer review date, or a date in which any offers from buyers are due. In theory, this allows all offers to have a fair shot as they would be presented at the same time. However, there are pros and cons to this practice and there are still buyers who may try and circumvent the competition.
The pros of an offer review date: In addition to indicating to the public that demand is expected to be high and therefore piquing interest, this also encourages buyers to act with haste. In addition, this generally encourages serious buyers to make serious offers.
The cons of an offer review date: In the event the property doesn’t get offers and need to retract the offer review date statement in the MLS, this may make the listing look less appealing or make buyers wonder why no offers were made.
If you do choose to have an offer review date, we will discuss a week to ten day strategy that includes a brokers open if possible (an open house for real estate agents), a public open house (if your home is in an area with successful open houses), and enough time for buyers to do their due diligence and learn what they need about the property before making an offer.
I will be gathering the offers and specifics at the deadline and will present them to you in a way where you can easily analyze the pros and cons of each. You will have an opportunity to negotiate with the buyers as well.
If you decide that an offer review date is a strategy you would like to employ, one thing we will discuss is what happens when a buyer decides to make a strong offer right out the gate that expires before the offer review date. This is a strategy that some buyers make, appealing to sellers’ desire to have an offer accepted and proceeding to close in order to avoid competing with other buyers (the bird in the hand is worth two in the bush philosophy). Of course, there are pros and cons to accepting an early offer; the offer may be lower or not as strong as the offers that come in at the offer review date and in the event that this offer doesn’t close, there may not be a backup offer in place. However, if the seller waits for additional offers to come in, there may be none forthcoming.
There are a lot of options here, but when it is time to list your home, if we expect multiple offers, I will review all your options with you, present all the pros and cons of each option, but you will ultimately be in the driver’s seat. Questions? Let’s talk! Give me a call, text, or email: firstname.lastname@example.org or (253) 222-2626.