This week we focus on multi offers. They are often something that buyers find confusing mainly because the process is not explained properly and can leave people feeling frustrated and unfairly treated.
Below I have sourced some information from the REA (real estate authority) website guidelines. "Multi-offer situations can be confusing for potential buyers, and REA continues to receive complaints and enquiries about multi-offers. Complaints can arise because potential buyers have not understood the process correctly and feel they have been treated unfairly. It is important that the sales consultant provides information about the multi-offer process, and make sure the potential buyer has understood this information. There is also often confusion around time frames in a multi-offer process, especially when the potential buyer thought they were the only party interested in a property. Potential buyers may be suspicious about competing last-minute interests in the property. Another potential area for confusion is if an earlier offer has been declined by the vendor and there is now more than one buyer interested in the property. A real estate sales consultant needs to clearly explain the multi-offer situation is a new sale process, and the potential buyer has the chance to submit a new offer that should be their best offer. The REA encourages all agencies to have clearly documented policies and procedures for the process they will follow when a multi-offer situation arises. This will helps agencies have a consistent process and to provide clear information to both vendors and buyers about what process will be followed. Important considerations Firstly, the most important requirement is to ensure that all parties understand that they are participating in a multi-offer situation. Other multi-offer considerations for potential purchasers:
being informed to put in their best and highest offer, because they may only have the one opportunity to do so
being made aware that the vendor may choose to negotiate with one potential purchaser to the exclusion of others, or negotiate with all interested parties
being made aware they can withdraw their offer or counter-offer at any time before acceptance (all parties should be advised of their rights regarding this).
To hear me talk more on multi offers listen to my podcast: louiseroke.co.nz and hit the Property Chit Chat tab