Multi Offer Situation - What Happens When There are Multi Offers?

Apartment Specialists Podcast No: 191

Summary:

When a property is for sale, there may be different offers from multiple buyers. What happens then? How does a multi offer take place? Watch the video to know more.

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What is a Multi Offer Situation in Real Estate?

A multi offer situation arises when there is more than one buyer wanting to put an offer on a property at the same time.

A multi offer situation is not limited to two parties; there could be 3,4,5 or even more buyers involved.

So what happens?

As a buyer, you will be either alerted as an interested party that an offer is being presented on a property you showed interest in or you have put in an offer and you are alerted that another party is intending to also put in an offer on the same property.

All negotiations then stop. You are in a multi offer situation.

This is not bad news. This means you are most likely interested in a property that is favorable and priced well.

You will then be asked to put in your best offer in writing and asked to sign a form saying that you acknowledge that this is your best offer and you understand you may not get another chance to negotiate.

All offers are submitted to the vendor and the owner then chooses which offer to accept or further negotiate with to try to form a mutual agreement of sale.

If you have any questions, flick me an email at [email protected] or call +6421 424 892 and I’ll be happy to answer your queries.

TRANSCRIPTION:

Good day, Andrew Murray here from The Apartment Specialists, talking about multi offers. So, what is a multi offer? A multi offer situation arises when more than one party wants to purchase the same property, and so all negotiation stops, and you're in a multi offer situation. Now, a multi offer situation is not limited to just two interested parties - it could be three, four, five, six. It could be endless amount of parties involved.

So what actually happens? How does a multi offer situation arise? Either you as a-- you've shown interest in a property, and you're contacted by an agent saying-- letting you know that an offer has been put in-- put towards-- been presented to the vendor, and if you are interested in that property you need to act now and look at putting in an offer, otherwise you may miss out. Or you are the person who have actually put in the offer, and the agent rings you and tells you all negotiation needs to stop, another party is interested in that property, and we're now in a multi offer situation.

What happens then? You then will be given a form by the real estate agent, so you acknowledge that your offer that you've then put forward is your very best offer, and that you understand that you may not get another chance to negotiate. Basically that's saying if you miss out, you understand that you put your best offer forward, and you have no reason to be disgruntled or upset, I suppose.

Then what happens is obviously you put your best offer in, both offers are submitted to the agent or agents - there could be multiple agents involved, there could be different agencies involved. Each offer will be confidential, either put in a sealed envelope or dealt with appropriately so it is confidential, dealing with electronic signature. Then what happens is those-- all the offers involved will be presented to the vendor, and the vendor then decides either which one they will accept, or they'll decide which party they're going to negotiate with. Then negotiation will form, and in a sale and purchase of a property will be mutually agreed upon.

Anyway, hope that helps. That's basically how a multi offer happens, and I'll go through the details of that in further podcasts. Andrew Murray, Apartment Specialists.

If you have any questions, flick me an email at [email protected] or call +6421 424 892 and I’ll be happy to answer your queries.

Cheers.