Are you in the process of trying to buy a property and been advised that you are buying in a multiple offer situation? Well, there are 6 vital facts you should know.
First things first though, let’s get you up to speed with what exactly defines a “Multiple Offer Situation”. We looked at what The Real Estate Institute of Queensland defines as a Multiple Offer Situation. “A multiple offer (or multi offer) occurs when more than one prospective buyer makes an offer on the same property by submitting a Contract of Sale. A Multiple offer often happen in a seller’s market when competition for residential property is greatest. It also typically happens when there are more buyers than there are properties for sale.”
Here’s some great advice from one of Calibre Real Estate’s leading property specialists, Kelly Hardie.“Prudent agents will never keep any of their buyers in the dark about the status of their offer. If you are ever unsure about where you stand, don’t be afraid to ask questions.”
The 6 Vital Facts you should know to be the successful buyer in a Multiple Offer Situation
1. Officially Acknowledged
In a Multiple Offer Situation, the real estate agent must ensure all buyers sign a “Acknowledgement of Multiple Offers – Buyer” Form.
The Real Estate Agent must make all buyers aware that there is another offer to purchase existing on the property. You must sign this document to acknowledge that you have been advised to submit your best & final offer. You also need to beware that you may not have an opportunity to make a further offer.
2. Deceit-Free Zone
An agent can not mislead or deceive buyers. By telling them there are competing offers when there are not. Heavy penalties can occur if an agent is caught out.
3. Submit ALL Offers
Real estate agents have an obligation under the Property Occupations Act 2014 to submit all offers that comply with the seller’s instructions to the agent. Exceptions occur when, for example, the seller instructs their agent not to submit offers under a certain dollar figure.
Agents also have a statutory obligation to attempt to get the highest possible price for the seller.
5. T’s & C’s
Buyers should also be aware that sellers will examine all the terms and conditions of each offer before deciding to accept or reject any particular offer. The conditions can make certain offers more attractive for reasons other than the proposed price alone.
6. Conditional vs Unconditional
Some sellers may be prepared to accept a lower price if the offer is unconditional. Rather than take the risk that a higher offer may not proceed to settlement, because of the special conditions required by a buyer.
If the owner decides not to accept any offers, the property may go to auction. For professional tips on how to buy at Auction, click here.
Furthermore, here are some other articles about purchasing property that other readers have found helpful :
- How To Buy A House : 9 Things You Need To Know Before Signing
- How To Be The Winning Bidder When Buying At Auction
- The 5 Step Game Plan To Begin Building Your Real Estate Portfolio
- Buying At Auction : 14 Things You Need To Know
- Top 10 Real Estate Terms Defined