No matter what the market is – hot, slow, balanced – some properties will always receive multiple offers.

Do Sellers know if their agent is skilled in handling multiple offer situations? Do they ask their agent how they will handle a multiple offer situations, when interviewing them for the listing agreement? If you are a Seller, it’s good to have clarity on this subject.

We assume that Sellers will always want their property to sell for the highest possible price, in the shortest amount of time with the least amount of uncertainty. So the combination of these three become ingredients of the highest value of any offer:

-          Price

-          Length of escrow

-          Certainty of closing the transaction

Multiple Counter Offers

When a Seller’s agent receives more than one offer, their skills in managing an auction situation should kick in. Besides, an agent versed in the auction techniques and psychology will create an atmosphere of desire to participate in the auction competition. When the Seller’s agent offers a guide and time-line for presenting offers, the process is much more palatable for all parties. In my experience, using the Arizona Association of Realtors Multiple Counter Offer Form helps the communication very much and I highly recommend using it. This communication tool allows Seller to make counter offers to one or more prospective Buyers on terms that may or may not be the same.

When I am taking a listing I show to the Seller the worksheets and tables which I use in order to present the content of all offers on one page format - easy to read and make a decision.

Auction Psychology

Seller’s agents, who are well-versed in negotiations and auction psychology will encourage Buyers to present their highest and best offers. Cognizance of the market conditions will prompt them never to underestimate any offer. For example, if the market is hot, Buyers may offer immediately their highest and best, but when the market is lethargic, some Buyers may want to test the market with a lower offer. This does not necessarily mean that they will not pay a higher price. If the Seller chooses an offer without countering all multiple offers, they are losing the opportunity to receive the highest amount of what the Buyers are willing to offer. Using the AAR Multiple Counter Offer Form is the solution for situations like these.

Seller instructions

Should the Seller’s agent inform Buyers of the best price/ terms received or not? The answer is, it depends on the instructions the Seller gave. In my opinion, if the Seller allows disclosure of best price/terms, the most motivated Buyer will emerge, and this will produce the best results for all parties – the Sellers will not leave money on the table, and the Buyers will acquire an asset that they want.

If you are looking for an experienced listing agent in the Tempe, Phoenix, Scottsdale area, please reach out to me. I will be happy to provide you with a structured process and informative initial consultation, where we determine if we can work together.