We were in multiple offers with six other buyers this week. We submitted our offer with everything the seller requested, but later were asked to re-submit because the offers were “too close to call”. It feels like we’re being treated unfairly. What’s going on? – UNHAPPY
DEAR UNHAPPY: Multiple offers have long been part of real estate, though the patterns have changed in recent years. Prior to 2016, when a new property came to market and was priced right, it often received a couple of offers. Since then, Waterloo Region property sales have really taken off and we’re seeing a huge increase in multiples.
Our local real estate boom is fed by an influx of buyers from the GTA. Their influence can boost the volume of offers from a couple to a dozen or more, depending on how the property is marketed, how close the asking price is to market value, and where we happen to be in terms of inventory.
Buyers and sellers have opposite motives, which makes dealing with multiples challenging for both sides. Sellers want to capitalize on the highest offer, and their agents are governed by strict provincial rules. Buyers want to purchase at the lowest price and can be left feeling like they have no control.
From what I understand, the pattern of asking for several rounds of offers is more common in the GTA than it is in Waterloo Region. If a local agent explains the offer process properly and in advance, their buyer will understand that they probably have one chance to put their best foot forward, not several opportunities.
When a seller and their agent collect and review the offers, choosing one to work with is usually straightforward. If one offer stands out from the rest and meets the seller’s expectations, the selection process typically ends there. If the seller’s agent asks buyers to re-submit, the offers may have fallen short of expectation and been wholly declined by the seller, or a number of offers could be very similar, which happens more than you might think.
What does a selling agent do when the offers they receive are virtually identical (ie. too close to call)? They could toss a coin to see who wins, or give buyers a chance to resubmit and possibly improve their offers. If you lost the house in a coin toss and later discovered that it sold for what you offered, you’d likely be upset. As unfair as it may feel in real time, the call to resubmit is a chance to reconsider your position and win the deal fair and square.
PRO TIP: At the end of the day, buyers typically appreciate that it’s within their control to stand firm on an offer or improve it. Losing a deal for an arbitrary reason doesn’t sit well with anyone. #Advice #AskDavid #TheNegotiator
David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Call or text today for your free home evaluation! 519-577-1212.