The multiple offer process is intended to provide all interested buyers with a fair opportunity to submit their best offer for a property they wish to purchase. Multiple offer processes can differ from agency to agency, but they can only be described as multiple offer when there is more than one offer in writing.
Each buyer should consider what they can do to make their offer attractive to the seller. The seller is not obliged or required to accept any offer. They may accept one offer, reject all offers, or choose to negotiate further with one party.
A multiple offer process can occur at almost any time there is more than one buyer seeking to make a written offer on a property.
When more than one buyer makes a written offer on a property there are specific things that must occur.
- There must be more than one offer in writing. An agent can’t say you are in a multiple offer process if there are no other offers in writing.
- In a multiple offer situation, the seller can choose the offer that works best for them from a number of offers.
- If you are a buyer in a multiple offer process, you need to put your best offer forward because you may not have another opportunity to increase your offer at a later stage.
- If you have any concerns about a multiple offer process you are part of, you can speak to the supervising agent or branch manager of the real estate agency you are dealing with about your concerns.
What do you need to know about the multiple offer process?
- Agents are expected to clearly explain the process and any relevant paperwork to the seller and all buyers. Here at Susa Guhl Partners we have a specific multiple offer form which we will give you, talk through with you, and ask you to sign so that you are completely informed about the multiple offer process and what it means for you.
- All the offers must be presented fairly. An agent must not favour one offer over another. However, an agent is allowed to provide the seller with advice and information about how the offers might benefit or disadvantage the seller.
- If a buyer submits an offer before a multiple offer process starts, the agent must give them a chance to review their offer when the process becomes multiple offer. Similarly, the agent must inform you if the other buyers included in the multiple offer process pull out, leaving your offer as the only offer. In this instance, you will be given the opportunity to review your offer and submit a new one if you want to. You will see this clearly outlined in our multiple offer form.
- If you have any concerns about a multiple offer process you are part of, you can ask to speak to the supervising agent or branch manager.
How can you give a multiple offer process your best shot?
If you are a buyer in a multiple offer process, you need to put your best offer forward. We recommend the following:
- Research the property as much as possible to help determine what your best offer will be.
- Remember this may be your only opportunity to put forward an offer for the property.
- Talk to the agent to make sure you are clear about any deadlines and about the sale process as a whole.
- Remember that the highest offer is not always the successful offer. An offer with a lower price but fewer conditions may be chosen over a higher price with more conditions. You may wish to eliminate as many conditions as possible but make sure you are covering any areas of risk to you.