WERE THERE REALLY MULTIPLE OFFERS?
Mr. and Mrs. Buyer have looked at about a dozen homes over several months and finally settled on one that had been on the market for a while and has had two price reductions.
The property met their needs well: plenty of acreage, a decent kitchen, a basement, one floor living, and a wood-burning fireplace. They were ready to make an offer. Before doing so, I reached out to the listing agent for the Residential Property Disclosure Statement and was informed that another offer came in last night.
ALL REALTORS ARE CROOKS!
Undoubtedly, the thought had crossed my buyer clients’ minds. They started questioning the validity of an offer coming in; especially, since the house had been on the market, off and on, for several years. They asked me if I believed the listing agent was being truthful. I responded that the Realtor was governed by a Code Of Ethics, and as such, I was more inclined to believe they were telling the truth.
In fact, according to the Code Of Ethics, listing agents must have the seller’s permission to disclose the existence of multiple offers anyway:
“Realtors®, in response to inquiries from buyers or cooperating brokers shall, with the sellers’ approval, disclose the existence of offers on the property. Where disclosure is authorized, Realtors® shall also disclose, if asked, whether offers were obtained by the listing licensee, another licensee in the listing firm, or by a cooperating broker.”
Lately, multiple offers on properties have been the norm as opposed to the exception.
WHY ARE THERE SO MANY MULTIPLE OFFER SITUATIONS?
To put it simply, currently, there are more buyers than available properties for sale. It’s the classic example of supply and demand. Let’s compare the most recent 2-year period for Durham County: 12 months ended January 2015 versus the 12 months ended January 2013.
During this period, the number of available homes has decreased a whopping 27%. However, the number of homes sold has increased 19%.
IN TODAY’S MARKET, EXPECT MULTIPLE OFFERS!
I’ve had 4 consecutive clients face multiple offer situations. I’m advising my clients to expect multiple offers to be submitted on a property they’re interested in buying.
Consider this, “If you love this house, others will love this house too”. As a result, consult with your agent to formulate a strong competitive offer. Your agent will understand current market dynamics and be able to advise you on terms sellers will deem attractive.