Although we have not seen nearly as many multiple offer situations as in the past, it does still happen and may happen again this spring as the weather warms up and if mortgage rates stay attractive. I was involved in one just yesterday.You might be quite excited to get one but then you may be wondering what to do.
As a seller in Ohio, if you are notified that there are 2 offers on your property, here is what you should remember: You as the seller are the only one authorized to disclose the existence of those offers to the parties involved. In other words it is up to you, the seller, to decide if you want each of those 2 buyers to know that there is another offer on the table. It is not up to your agent to make this decision.
You may be asking yourself why you wouldn't disclose the existence of the offers to both parties. If you do, there is a risk, (admittedly a small one) that both buyers will rescind their offers as they may not want to compete for the house.
If you have 2 offers on your home, one may be significantly better than the other one and so you may want to immediately dismiss the less desirable offer and choose to work with the more desirable one, so as not to risk losing the better one. This is exactly how one of my seller clients proceeded a few years ago when he received 2 offers on his home, and one was 35K lower than the other one. He chose to proceed with the better offer and went forward with the closing. The agent who did not get the deal was unhappy but I was not representing the agent, I was representing the seller.
Conversely, disclosing the existence of the offers to all parties may work in your favor as both parties may increase their offers on your home.
Some sellers are tempted to counter both offers which is highly inadvisable as both buyers may accept and now you have sold your home to 2 buyers!
These are but a few of the scenarios that could come about with multiple bids.
As a seller it is very exciting to receive 2 offers on your home...what a compliment! But proceed with caution and make sure you hire an agent with some experience in this area.If there is any uncertainty at all, consult your attorney. For some question and answers on multiple bids by Peg Ritenour visit the Ohio Association of Realtors
If you would like information on real estate in your area, please contact Barb Szabo. I'd be delighted to speak with you.