Aren’t Multiple Offers Good For Sellers??
Listing Agent: “How did the showing go?”
Buyer’s Agent: “Great! They loved it.”
Listing Agent: “Is the Buyer going to write?”
Buyer’s agent: “No.”
Listing agent: “Why not?”
Buyer’s agent: “The Buyer doesn’t want to participate in an auction.”
–Email exchange between Buyer’s agent and Listing Agent (representing Seller) regarding a home that was in multiple offers.
Wait a second: aren’t multiple offers good for Sellers?
Generally, yes.
But, that doesn’t mean there aren’t at least a few risks and downsides.
Like, Buyers who drop out because they don’t want to compete for a home.
Cushioning the blow: the drop-outs are usually financially weaker, already at the top of their price range, etc.
Buyer Self-Selection
Who does that leave?
In theory, at least, the strongest, most motivated Buyers, who’ve emotionally bonded with the home and whose competitive juices (and adrenaline) are flowing — all of which bodes well for the ultimate sales price.
Which is why Edina Realty’s standard listing contract provides that listing agents will disclose the existence of multiple offers, unless the Seller instructs them in writing not to.
