195: Multi offers: Does the Owner Have to Accept the Best Offer?
Apartment Specialists Podcast No: 195
Summary:
When you're a seller and you're facing multi-offers from several buyers, how do you choose the best offer? What are the things you need to consider first before you choose the best buyer? Get all the answers from this podcast, as Andrew explains the essential steps you need to take as a seller.
Does the owner have to accept the best offer?
No, the best offer may not be what the vendor thinks is acceptable.
Maybe the vendor wants more. Or the other parts of the agreement aren’t to their liking like the settlement date or the conditions.
For example I remember working really hard for one of my owners. They were an elderly couple. I kept on going back and forth getting higher prices …to the point it was so far above market value it wasn’t funny….I couldn’t understand it.
Until I asked them the question…
What would you change about this agreement.
They told me due to personal reasons they couldn’t settle for three months.
I had the property sold within 2 days for a great price and a longer settlement.
So to re illiterate the topic of this post. The owner doesn’t have to accept the best offer.
The best offer is about perspective and individual situations.
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:
Andrew Murray, from Apartment Specialists, talking about multi offers, and does the owner have to accept the best offer in a multi offer? In the example, the answer is no. The best offer may not be to the vendor's liking, or there maybe be, often, conditions that the vendor wants to change. For example settlement dates, or certain conditions they may not want in the agreement.
The vendor has the right to choose which offer they want to negotiate with. That's why, when you sign a multi offer form, it says "This may or may not be the last time or last chance, you get to negotiate on this property, and you understand this." Because there is a chance that the owner may come back and choose your offer, or choose you, to negotiate with.
Now I'll give an example where price is just not always the factor. I was in my younger years, and I was running back and forward, like a headless chicken, coming back. I was working for this elderly couple, and I was getting them higher price after higher price, to the point where it was so far above market I couldn't believe it. I got these amazing prices, and this elderly couple just still said, "We're turning it down." And they just said "No, we're not interested."
I couldn't figure it out. I was young so it took me a while, until I asked them a question, I said "Well what would you change about this agreement?" And all they did was, they said "Well we can't settle for three months." And I was like "Oh, okay. So when can you settle?" And they said, it involved them, obviously, because of certain family members having to live with them.
What ended up happening was, we changed the settlement date and I had it sold in two days. So always remember, it's not always the price. There's always a lot going on. But as, the topic of this podcast was "Does the owner have to accept the best offer?" That's all about perspective, and the answer is no.
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, bye.