When selling a home, it’s not uncommon to get offers from multiple buyers. This is especially true in a hot market with low inventory. If you’re dealing with multiple offers, the question can arise about disclosing those offers. If you’re unclear about how and why to factor this into your negotiations, here is some basic info to help.
There are two benefits to disclosing offers to other buyers:
It can encourage one buyer to increase their offer. Informing a buyer that there is another offer in play might result in a larger offer from another buyer.
Sometimes, counter offers include more than a price increase. A buyer might offer better terms to sweeten the deal, like waiving appraisal or inspection fees. This is where seller contingencies come into play. It’s also common for an updated offer to be a larger deposit, quicker closing or even covering the closing costs.
While there are definite upsides to disclosing multiple offers, there can also be drawbacks:
Some buyers might be intimidated and walk away from the sale. Knowing that there are other, more competitive offers on the table could discourage them from pursuing the property.
Dealing with multiple offer disclosures can get confusing. The communication involved might get tricky and even stressful. Keeping track of which offers are available might turn into more of a hassle than you want in your selling process.
Disclosing offers can make the sale take a lot longer. Most home closings take a month or two, but if you’re dealing with multiple offers and counteroffers, disclosure could drag out the process. Each round of offers and counteroffers adds days to your total timeline, which can be especially inconvenient if you have a new purchase contingent on your current home sale closing.
Overall, consulting with a real estate professional will help you decide whether disclosing multiple offers is the right move. Weigh the options carefully to determine what will get you the best results.
Barbara started in Real Estate in 2006 after another Realtor told her that her personality made her a perfect fit for the industry. There is no doubt that Barbara’s lively personality and warm heart make her an awesome Realtor. Barbara was born in Italy and speaks fluent Italian. She grew up in Medford and eventually moved to Everett where she resides today. Her personality combined with her background in home insurance and customer service make her experienced in multiple facets of Real Estate and willing to work hard to help her clients achieve their goals. In my spare time I volunteer at animal shelters and foster dogs until we find their forever home. I am also proud to say that with every transaction I complete, a portion of my commission is donated to a local animal shelter.
