We have had a few situations recently where a buyer (not our buyer) has backed off of a property because they “don’t want to compete” in a multiple offer situation. The fear and reluctance with competing is understandable. Submitting an offer with no other buyer’s on the horizon is stressful for the average person. Throw a challenger into the mix and up, up goes the blood pressure.
Some important things to remember:
- The presence of another buyer does not have to alter your original game plan.
- Presuming you were going to submit an offer implies that you were serious about the property.
- By backing off simply because there was another buyer on the radar guarantees that you will not get the property.
Every home and every human is different so there is no fixed set of rules.
But, in general, when in multiple offers, take the fear out. Realize that when not in competition, in the Niagara region in general, that when a buyer finds a home they like, there is often the expectation to negotiate back and forth a few times. A buyer offers price ‘x’, negotiates back and forth, expecting to get to price ‘y’. When there is another offer, the number of steps simply change. The opportunity to go around the negotiation merry-go-round is usually gone.
Rather than offering price ‘x’, just realize that you need to offer the price you were originally prepared to offer. Think of it this way. If you went back and forth in a 3 or 4 day negotiation you would be happy getting to price ‘y’. Assuming price ‘y’ is fair market value or very close to, wouldn’t you be happy if you paid ‘y’ in competition?
It’s the anxiety and implied pressure of the word competition that sours the recipe.
Stay the course and always do what you are comfortable. Don’t let the HGTV Fear Factor of dreaded competition scare you away from an opportunity. Who knows what the other offer is, how solid the buyers are. In this business, no deal is ever (emphasize ever) done until it is d-o-n-e.
Navigating the real estate waters is rarely predictable and seldom as expected. For professional help, we always recommend the advice and assistance of a professional, full time, experienced REALTOR. Need help? We happen to know some…email or call anytime!
Thank-you for visiting.
THEbTEAM
Thanks to Tim Trad for the terrifying photo.