When London’s real estate market is sizzling, and real estate is moving quickly, how can you effectively deal with multiple offers?
London’s real estate is still sizzling and there is an overall desire to live in many areas of London, however some areas have low inventory. With this, often buyers will begin a bidding war on certain properties. Receiving multiple offers as a seller is a great position for negotiating terms and often gives them the upper hand. In situations like these, all the parties will be informed about how many offers have been submitted. All registered offers must be submitted and retained by a Brokerage, ensuring that all offers are real, and not falsely instigating a competition. All offer situations should be handled with care, but extra considerations come into play when competition is steep.
Tips for Buyers:
- Time is of the essence, so the sooner you can decide to make an offer the better, there is a higher likelihood you can work towards negotiating an offer before someone else beats you to it.
- Inquire about seller’s preferences. Maybe you can accommodate the seller and their moving date or leave an appliance out of the deal, as these will put your offer at an advantage.
- Keep your terms competitive. By having a competent team of professionals working with you, you can help make your offer appealing and competitive.
- Be realistic when it comes to making an offer. Don’t throw them a lowball offer, as this may drive up competition and lead to higher prices down. If the property is listed at a reasonable price and you want a fair shot, trust the strategy your realtor has put in place.
- Instill confidence in the seller that you are qualified. More deals nowadays are falling apart due to financing. If a seller knows you are preapproved, this will help with your offer. Typically, your lender can draft a letter to prove this information.
- Remember your goals. Sometimes it is easy to get caught up in offers, it is sometimes worth it to pay a little extra to get the house of your dreams, but sometimes it may be better to just walk away and wait for another opportunity.
- Tips for Sellers:
- Review the offers carefully. The purchase price is important, but so are other factors like closing date and conditions.
- Make sure to do your homework. It is important to ensure that prospective buyers are qualified, and that preapproved financing is in place. It is a giant set back to have an offer fall through due to unapproved financing.
- You will be faced with several offers. You may choose to send all offers back for revision (just in case anyone wants to make an update to their offer to make it more appealing), you could sign one offer back with some revisions in hopes of acceptance or accept one offer as-is.
- You may NOT sign back more than one offer as this could put you in a precarious legal position should both Buyers accept your revised terms. Under this circumstance, you would have sold your property twice (subject to conditions in each offer).
- Keep the terms of your agreement confidential until all notices and waivers have been submitted to lock in the deal. If you end up with a fall-through, you may not want other parties aware of what terms were negotiated.
There are many elements to deal with when it comes to a multiple offer situation. Each situation may require a unique approach to ensure that you are represented in the best way. So, make sure you are putting your best foot forward when competing on the purchase of a property!