Buying a home in Green Lake, Wisconsin? Get ready to negotiate. Though it’s nice to think of the sales process as a straightforward transaction, with buyers and sellers aligning their interests for mutual benefit, it’s rarely that simple.
Conflicting interests will necessitate difficult negotiations between these parties. That’s why the National Association of Realtors (NAR) set guidelines to ensure fairness in every transaction.
When the seller receives multiple offers, they may choose to take one or more of the following actions:
- Accept the best offer
- Inform all buyers that there are other offers on the table
- Counter one offer and negotiate with that buyer while rejecting the others
- Counter an offer while setting other offers to the side as they wait for a decision regarding the counter-offer
As a buyer, there are several negotiating strategies to employ in multiple offer scenarios. But choose wisely — making a low initial offer may result in another higher offer being accepted but offering a full-price offer may cause you to pay more than the seller might have expected.
Likewise, you could be competing against several full-price offers on the table – in which case you might have to sweeten the pot by waiving contingencies, showing proof of funds, or offering above the asking price.
Another great strategy would be to talk to your agent about establishing a confidentiality agreement with the seller prior to negotiations.
This is because purchase offers aren’t usually confidential — sellers can use this to their advantage by informing other buyers of your offer is in hand and perhaps disclosing the details of your offer with hope of getting them to up the ante and make higher offers.
Your agent will explain the pros and cons of these negotiating strategies based on previous experience. However, you get the final say in how you want to negotiate.
Getting multiple competing offers for your property can be a good thing (depending on the quality of those offers) as this gives you the upper-hand in negotiations.
An experienced agent can discuss various negotiating strategies. The simplest would be to accept the best offer on the table and negotiate with that buyer.
You can also inform all buyers that these are multiple offers on the table and encourage them to make their best offer. This could potentially help you secure a better deal than any of the initial offers you’ve received. However, this will take time and patience on your part. It can also discourage buyers who feel like they’ve made a fair offer and don’t wish to enter a bidding war.
Likewise, you can counter an offer while keeping other offers on the sidelines just in case negotiations fall through. This will allow you to keep your options open. However, other buyers may lose interest while waiting for the outcome of negotiations.
Your agent will help you anticipate the potential outcomes (and pitfalls) of each scenario. They will protect your interests during negotiations and help you secure the best deal possible.
Don’t miss out on a great real estate deal in Green Lake, WI and the surrounding communities. The Emmer Real Estate Group will help you navigate multiple offer negotiations. You can reach our team here. You can also contact us at 262.629.4747 or ContactUs(at)EmmerRealEstate(dotted)com.