# Selling a house - multiple offers



## Robert1977 (Mar 23, 2015)

Hi,

I'm selling my house (direct sale -- no agents involved). Two buyers will be meeting with me, at 24h interval, to submit an offer. Both are aware that there is another buyer about to make an offer.

I am planning on asking both for their best offer at first. I will also ask them what they expect from me if the other bidder is higher: do they want me to get back to them, to allow them to make a higher bid, or if they want to be left alone to avoid a bidding war.

That way, I hope to have this done in the most respectful and transparent way (except the fact that I will not disclose the details of each bid to the other party), while allowing me to get the best price I can for my house.

I'd like to get some input regarding this strategy. I want a smooth transaction and am not exactly looking after every cent I can get from this deal at the expense of bad karma.

Thoughts, comments welcome.

-Bob


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## Just a Guy (Mar 27, 2012)

Why 24 hours apart? Most people find the waiting to hear part to be very stressful. I'd tighten up the time.


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## Robert1977 (Mar 23, 2015)

Its just a matter of timing on the buyer's side, they both want to meet in person, one is available sooner, the other one is out of town and is coming back only the day after the first one is coming to see us.


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## none (Jan 15, 2013)

They're going to be cursin you anyway once the market corrects so you may as well fleace these greater fools for all the cash that you can.


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## Canuck (Mar 13, 2012)

"except the fact that I will not disclose the details of each bid to the other party"

I'd be leery of this if I was the buyer. How can they know for sure that the other offer really was higher? 

I mean, I guess if you went to both of them and said to both that the other bid was higher you might have both decide to walk away, which would be karma for sure.

I'd want an independent party to hold both bids and confirm to either party (if they want to try and outbid the other) that there was indeed a higher bid than what they put in.

Is the property in Van?


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## Jungle (Feb 17, 2010)

After a couple bidding wars we were involved with, the approached I liked best was this:

Buyers only allowed to submit one offer-their best offer. No back and forth. 

We were in multiple offers and things can get quite silly, time consuming and stressful. 

Hopefully this should weed out any flakes or low ballers that are not serious, or at least make them think to put a more serious bid in. 

Good luck


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## Just a Guy (Mar 27, 2012)

When I deal in foreclosures, the banks ask for submissions at one time, then give the results of their selection and it's over. The winner wasn't always the highest, sometimes it was the terms, but in the end it was one submission, one decision.

With realtors and a bidding war, the realtors involved are not legally allowed to disclose the other party's bid. What they are allowed to do is counteroff. So, if one bid is higher, the seller can counteroffer and it can get pretty messy as nothing says you have to accept the counteroffer even if they meet all your demands...


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## My Own Advisor (Sep 24, 2012)

I agree with Jungle, if you are entertaining multiple offers; set the rules and keep them simple: buyers are only allowed to submit one best offer. No back and forth.

Force them to make a serious decision which means if they don't put in a great offer, the house could be gone.

Keep it simple for you and for the prospective buyers. The less rules, the less headaches and the less backlash from all parties involved.


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## kcowan (Jul 1, 2010)

I would hold all offers until the same date. Then I would advise only the lower bidder that they are low and would they like to improve. Never disclose the bid amounts. If the lower bidder beats the higher bidder, then advise that bidder that they are low and allow them to offer a higher amount. In our case it was all resolved on the same day.

If the latter bidder is higher, they get the house and advise the other bidder that their bid was not the high one. This avoids the back and forth. Plus it is ethical.


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## Sherlock (Apr 18, 2010)

Why is it so important to avoid the back and forth? I mean isn't it worth the extra hassle if it will result in you getting thousands of dollars more in your pocket?


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## Robert1977 (Mar 23, 2015)

Thanks for the feedback/responses. Good food for thought.

Sherlock: actually I'm not sure why it is that bad. I read/heard others that the back and forth is usually hurtful for the parties involved and that even the winning party may feel resentful.

The first offer came in and they said they would like to know if we received a higher offer because they would hate loosing the house for 1000$. I told them "well I'm sure the other buyer will feel the same...". I guess the problem will occur only if both offers are very similar, we'll see how it goes.


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## marina628 (Dec 14, 2010)

We sold a house in multiple offers last month ,the back and forth is what gets you top dollar.


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## OhGreatGuru (May 24, 2009)

The low bidder is still stuck with taking your word for it that you really have a higher bid in hand. And if you convince one to increase his bid, do you then go to the second and ask him to go higher? You're trying to create an auction that isn't open to scrutiny. 

The only suggestion I have seen so far that may be fair is a counter-offer, because then you are stating a price that you will settle for. (Of course, if your counter-offer is above your asking price, they are going to wonder what's going on.)


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## jamesbe (May 8, 2010)

Either way you will have to be careful. Read all the terms not just the amounts. Best offer is one with no escape clauses.

I could offer you $400k for your home and the other guy $300k. But if I put conditional upon inspection and then don't like what I see or just change my mind I can make the offer null and void. And by the time I do that you'll probably have lost the other guy that was interested.

So my advice is if both offers are on the table, take the one (if there is one) that has less / no conditions.


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## IFITSTOBEITSUP2ME (Mar 6, 2015)

You handle it however you want to but FWIW: Why would you want to risk upsetting both or either and having them both walk away, have seen it happen and have done it when offering on a property and seller portrays too much greed, tries playing games or feel they are lying to us stalling for time with another offer in how handling it. Why not just ask them to submit their offers to you in writing and that you will deal with both offers at 'x' time on 'x' day. You then basically have 4 options:

a) Decline both offers
b) Accept one offer
c) Counter one offer
d) Accept a back up offer just in case.

Do consider not always the highest price offer initially is the best. How qualified are those folks to carry on with the purchase? Are you happy with the terms, possession date, conditions, goods included etc. If the lower offer is giving you more confidence, then why not counter that offer to feel them out. 

Which ever offer you decide to work with, once you have it all agreed and in writing then you can tell the other person sorry but .......

Just be careful you don't end up losing the best offer or person by trying to play games with them. Seen and know of a lot of folks that walk if they feel they are being played, we do for one, but then I guess it all depends on what your market place is like right now.

Good luck.

PS: Just thought, if you have unconditional offers make sure they categorically confirm they have actual cash to close and are not putting financing on it after acceptance has been agreed. In multiple offers folks do this sometimes and then hope they can get it financed after the fact. If its totally zero conditions get a large non-refundable initial deposit, so you'll hopefully have some compensation "just in case".


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## tombiosis (Dec 18, 2010)

IFITSTOBEITSUP2ME said:


> if you have unconditional offers make sure they categorically confirm they have actual cash to close and are not putting financing on it after acceptance has been agreed. In multiple offers folks do this sometimes and then hope they can get it financed after the fact. If its totally zero conditions get a large non-refundable initial deposit, so you'll hopefully have some compensation "just in case".


Following this thread with great interest....planning on selling in 1 year myself.

How would one "confirm they have actual cash" or approved financing for that matter if you are selling without an agent? Are you back and forth with your lawyer constantly on each detail of each offer? sounds like it could get expensive....


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## rikk (May 28, 2012)

Fwiw, Garth just posted with some (more) content on bidding ... http://www.greaterfool.ca/ ... "Phantoms"


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## Just a Guy (Mar 27, 2012)

tombiosis said:


> Following this thread with great interest....planning on selling in 1 year myself.
> 
> How would one "confirm they have actual cash" or approved financing for that matter if you are selling without an agent? Are you back and forth with your lawyer constantly on each detail of each offer? sounds like it could get expensive....


No, it's not a constant back and forth, you get a large, non-refundable deposit to ensure if they try to back out later, it's a costly mistake for them...but that's not what bothers me about this comment...

You are dealing with 100's of 1000's of dollars, yet worried about spending maybe a couple thousand dollars to protect a deal worth hundreds of thousands of dollars...

Now, personally, I'm not a big fan of lawyers or realtors but there is a time and place to be frugal, and there is also a time and place to spend some money...this is one of those times.


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## nobleea (Oct 11, 2013)

Just a Guy said:


> Now, personally, I'm not a big fan of lawyers or realtors but there is a time and place to be frugal, and there is also a time and place to spend some money...this is one of those times.


I don't see what a realtor could do for this that a lawyer couldn't do better. For a fraction of the price.
For sure a lawyer should be involved to review things.


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## Just a Guy (Mar 27, 2012)

I was talking about the lawyer part in this case, not the realtor...sorry, my dislike of realtors brought them up as well.


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## Cal (Jun 17, 2009)

Personally I would meet them at same time....hear their initial offers, tell them a little more of what you are looking for in regards to closing dates and such, and to come back to you with their best offer, and you will pick one. 

Over and done with in an hour or two.


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## MoreMiles (Apr 20, 2011)

I would refuse to meet the other buyers at the same time. I would feel the seller is trying to pressure me with other people as his bargain chip. I would walk away. 

Or I would try to speak to the other buyers privately since the seller has introduced us to each other. We can then plan reverse strategies to teach greedy seller a lesson like low balling and unrealistic conditions. Etc


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## trungnghia1556 (Mar 30, 2015)

Don't get too greedy and end up with both parties walking away.

(I've seen this happen on Shark Tank a few times.)
me too


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