Multiple Offer Disclosure
Multiple offer disclosure and how should a buyer respond?
Multiple offer means that the sellers have more then 1 offer. Instead of the seller responding by countering, rejecting or accepting an offer from any one buyers offer they have opted to go into a multiple offer round. The seller wants your highest and best price your willing to pay for the home. You will need to not exceed what your pre-qualfied by your lender to pay for this home.
Its discouraging when You just found your dream home and you either want to put in an offer or you already have. Your Real Estate agent informs you that the property has multiple offers and your highest and best is due by a certain date. When receiving Multiple offer notification your highest and best is usually due in a short time frame. What do you do and how do you respond?
Can you stay at your original offer price? You absolutely can stay at your original offer price but if you really want the home you might want to rethink your low offer. Its a sellers market in the Indianapolis Real Estate market and surrounding communities. The list to sell statistics in certain communities indicate very little negotiation with sellers on price and closing costs.
The best offer you can make is the offer your willing to walk away from the home if you don't get an acceptance or the highest amount your willing to pay for a home no matter what the list to sell statistics say. I have put in offers above asking price and the buyer still didn't receive an acceptance from the seller. There is never a guaruntee but if you want a home you need to be competitive. Trying to get the lowest possible price in a multiple offer round is not the best strategy.
What happens if you get an accepted offer but your worried about your contract price not appraising for the price you are paying. In the Indianapolis are mibor contracts it specifically states on page 2 under new mortgage that Completion of this transaction shall be contingent upon the buyers ability to obtain a mortgage loan. If the property appraises for a lower price then the accepted contract price and your not willing to bring extra funds to the table and the seller isn't willing to go down on the price (I'm not an attorney) but your contract states that it is conditional upon your ability to get a mortgage loan under the terms of the agreement.
No one likes to be under multiple offer. I try to avoid being in a multiple offer situation at all costs.
There is a better chance for neigotiation if you aren't under multiple offers. If I know its a hot property its best to put in an offer very quickly, tighten it up (time for seller to respond is short) and submit as soon as possible. There is no guaruntee that it will work but it gives you a better chance to avoid.
My Blog on my website SellingIndyMetro.com article Buyer Multiple Offer Notification
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