Remax sarnia realty inc., Brokerage
1319 Exmouth St. Sarnia,
ON, N7S 3Y1

Ryan Gervais

Ryan is a full time Sales Representative with Re/max and look forward to being your guide to the Sarnia Real Estate market
ryan.gervais@sarnialistings.com

Multiple Offers

16
Feb
no Comments In Real Estate

Although Sarnia is far from Toronto we still get our fair share of multiple offers on certain houses.  There are many varying opinions on how to handle multiple offers and how the public reacts to this situation.  I will try to give a real estate agents point of view and give some quick pointers on what to do as the Buyer and how to react as a Seller.  I had the idea for this post as my last two listings have had 3 offers each and we are currently dealing through it.

First of all Buyers need to know who is working for their best interests in the deal.  This is what we call Agency.  A Buyer has three options to choose when they submit their offer.  They can use a Buyer’s agent, this is typically the best way because a buyer’s agent represents you and only you and has a fiduciary duty to protect you.

The second option would be to use the listing agent to submit your offer.  This would cause the listing agent to be in multiple representation and when that happens they cannot give you any help on what price to submit or motivations of the Seller.   If you as the Buyer have done your homework and know the exact value on the house you are submitting the offer on this situation is fine as long as the agency relationship has been disclosed upfront by the agents involved.

The last option is the least used option in practice as most Buyers want to be represented in someway.  A Buyer can be given customer service by the listing agent meaning that the agent will be representing the Seller and not the buyer in the transaction. They will have to deal with you fairly and honestly and can type up the offer for you but that is about it.  This is the most dangerous option since anything you say to the agent can and will be used against you since they represent the best interests of the Seller only.

Now that you have picked one of the three options above you have to submit your offer.  In multiple offer situations you must be informed that you will be competing.  Usually your agent will tell you before you write your offer.  If you find out after the offer is written you should get a chance to resubmit a better offer if you want to or you can let your first offer stand.  This is a very important part of the equation as you must know you are competing, it’s our duty as a Realtor to disclose this to you.

BUYERS TIP:  It’s not always about price.  Terms of the offer such as closing date, deposits, conditions all have a huge bearing on your offer.  It’s not always the highest price that wins the multiple offer war.  A clean cash offer with no conditions often wins out to a conditional offer.  Talk with you agent about your situation before deciding to take out any conditions.

Now let’s flip over to the seller who has received multiple offers on their home.  The Seller has all the power in this case; they can reject all offers, send all offers back to see if they can make all of them resubmit a higher offer, they can sign back one, or they can accept one.  Each case is different and my advice changes depending on the situation so there is no one right way to deal with multiple offers.  As long as you have a competent Realtor who explains all your options you will do fine.  Remember the agent needs to protect your interests as the Seller.

I wish you all the best of luck and hope you get multiple offers on your house when it is time to sell!  Do not hesitate to call or email me if you need advice on Buying or Selling your home.  Spring is coming and you should start preparing now if you are looking to buy or sell.

Ryan Gervais

Ryan Gervais is a full time multi-award winning agent who is here to help you through your real estate journey. Ryan's main passion is to protect his clients greatest investment by making sure you buy a great house for a fair price. Reach out today and see for yourself the difference a great agent can make.

(519) 381-4055
ryan.gervais sarnialistings.com

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