As the market starts to heat up, it is increasingly common for properties to attract multiple offers from interested buyers.
What is a multiple offer?
When more than one buyer submits a written offer on a property, this is called a multiple offer situation.
t’s good news for the seller because competing buyers bring an opportunity for a higher sale price to be achieved.
As a buyer, it means that you may only have one chance to submit your best and final offer on the property. The vendor (the seller) may choose to come back to each buyer if they are dissatisfied with the offers on the table, however, there is no obligation for a buyer to change their offer.
Here are a few tips for buyers on how to handle being in a multiple offer situation:
- Have your financing arranged and make your lender has given pre-approval
- Speak to your solicitor or conveyancer about contract conditions including building pest inspections
- Inspect the property
- Ask the seller’s agent if there have been any prior offers or any other offers currently presented
- If there is another offer on the property and you want to make an offer, ask the agent for an REIQ Acknowledgement of Multiple Offer form
- Confirm your price and contract conditions with your bank/broker and solicitor/conveyancer
- Submit your offer along with the Multiple Offer Form to the sales agent
- Confirm the date when the owner will be presented with the offers and when you can expect a decision
- Don’t rely on an opportunity to improve your offer. You may only have one chance at this
- You can improve your chances without offering more money through other features of the contract. Offer the seller a faster settlement or consider waiving your cooling off period. This may be more attractive than the extra few thousand dollars another buyer may be offering.
During this process, agents are prohibited from disclosing the details of any competing offers to competing buyers. If they do, this is known as a ‘silent auction’ and complaints should be directed to the agency principal. If you are still unsatisfied with the response, we suggest speaking to the Office of Fair Trading Qld.
Stay in touch with the selling agent, even if you have been unsuccessful, because the preferred buyer may not be able to complete the contract. And if not, the agent may be able to show you a similar home that’s even better than the one you missed out on! Good luck!