Hammer + Nail

What Do Multiple Offers Entail?

If you have several competing offers on your property, you have entered a multiple-offer situation. You’re going to have to weigh the offers and decide which is most appealing. 

One word about multiple offers: your agent or broker can offer suggestions, but it’s going to ultimately be up to you to decide how to handle them. It’s never too early to start thinking about this!

How Do I Handle Multiple Offers?

There are several options available when you’re juggling multiple offers:

• Accepting one of the offers if it’s far better than the rest
• Returning to all offers with a best and final, meaning you want each person to come back with their top bid and strongest terms
• Negotiate with one or more parties while excluding others if they are unacceptable
• Rejecting all offers if none meet your standards

What Else Should I Consider Besides the Price?

Keep in mind that the best option may not necessarily be the one for the most money. Another lower offer may have more advantageous terms. Here are a few things to factor in when mulling offers:

• Contingencies: how easily can a buyer get out of the purchase contract? Common contingencies when buying land include:
  • Financing
  • Appraisal at the purchase price
  • The ability to pass a perc test on the soil and/or get septic permits
  • Acceptable zoning regulations
  • Getting a deeded right-of-way to access the property
  • A sufficient supply of well water
• Earnest money deposit: where the rubber hits the road. Since the buyer loses their money if they back out or default, higher amounts indicate more serious interest.
• Financing: how is the buyer paying for the land? With a cash offer, confirm proof of funds; if the buyer is financing the purchase, you can confirm through a lender letter. Make sure to see which bank and program type they are using as well.
• Title company: is it reputable? Your agent should be able to quickly determine this.
• Closing timeline: is the buyer’s timeline convenient for you? Make sure their schedule aligns with yours.
• Inspections: is the buyer proposing an inspection or are they waiving it? If the latter, this could be an appealing part of their offer.

Wishing you the best of luck choosing the right offer for your needs!