The Multiple Offer Situation
A multiple offer situation is when there is more than one offer in on a given property by multiple parties. Frequently when trying to acquire a foreclosure in Battle Creek, one encounters the multiple offer situation. The bank or mortgage company selling the home recieves more than one offer in a short period of time. They respond to all parties that they must submit their ‘highest and best’ offer, and it is implied that the highest bidder will be awarded the house.
It is a tense situation, mainly because one usually does not know what the others are offering. It can create a lot of uncertainty as to what to do. The most stable approach that you can take is to not try to guess what the other guy is doing, but look at your numbers, and what you are willing to pay for the house. Put your best foot forward, and hope you are successful.
Probably the most important piece of advice, it to be willing to have the house and not have the house in your own universe. We willing to be the winner or the loser, and do not let your emotions get caught up in the equation. Try to focus on your business sense and stick with what you know you are willing to pay, and what you can pay, and go with that. Trying to do it any other way is to get all off track really.
The seller does not always go with the highest offer in these situations either. I have been witness to a bank or mortgage company taking a lesser sales price over another offer, simply becuase the smaller offer was a cash offer that could close in two or three weeks, and the other was a financed offer needing four or five. So there is a lot to be said about making a strong offer, rather than just focusing on the highest one.
Look over your terms. What can you do to make your terms competitive? Are you asking for an inspection period? Sometimes with a foreclosure it makes more sense to buy a home warranty with your purchase, and waive the inspection period. Each circumstance is different, and that is why you will want to work with a Realtor that knows the area and can give you insight on what to expect. Consider also reading and watching my video on negotiating tips.