Multiple Offers! Great! Or is it?

The market here in the triangle has shifted more towards a sellers market recently. I am seeing multiple offers on my listings and it all sounds great! However, please keep in mind not all buyers are cash buyers that do not require an appraisal. Some cash buyers order an appraisal for their own piece of mind.

If you have to get a loan in order to purchase your home, then consider the following questions during your negotiations:

1. Are you paying over market value?
2. Do you expect the sellers to reduce their price if it does not appraise?
3. Are you willing to pay the difference?
4. Did you ask for closing costs (i.e. asked the seller to pay some of your closing expenses),
5. Do you expect the sellers to make repairs even though the contract says in current condition?

I ask my buyers this upfront because in the past two years I have seen what I term buyers’ remorse a day or two after they “win.” The buyer may call a parent, grandparent or close friend to explain how they just bid out a ton of other buyers. When they seek advice from trusted confidants, the deal can turn sour quickly!

The key to understanding the pros and cons of multiple offers from my experience is set expectations. It sounds great to get more than asking price for a seller, but perhaps taking a deeper dive into the buyers’ or sellers’ psyche before accepting the offer may be a smart move for everyone!