Houses for Sale and Multiple Offer Sudden Death

Houses for Sale and Multiple Offer Sudden Death

Those who have been paying close attention to how the houses for sale in  Centennial   Cherry Hills Village  Greenwood Village  Lone Tree have been performing may have observed the results of the dreaded “multiple offer situation.” When a closing price seems to rise unexpectedly, it could be because of something called the “Notice of Best and Final.”  

That notice can be issued by a listing agent as soon as more than one offer is on the table. Experienced real estate agents sometimes choose this strategy to win the best price for their client. It instructs all interested buyers to submit their “best and final offer” by a deadline (usually within 24 - 48 hours). Since no counters or escalation clauses are allowed, one blogger has aptly called it Multiple Offer Sudden Death. Here’s how it works:  

·        The seller’s asking price is listed at, say, $320,000.

·        Buyer A is interested; bids $310,000.

·        After a few rounds of negotiation, the seller and Buyer A near agreement at $316,000, when-

·        Buyer B, not knowing that the seller is nearing agreement with Buyer A, submits her own bid.

·        The seller initiates Notice of Best and Final, giving both parties two days to submit their last offer.

·        Buyer A begrudgingly goes up to the full list price: now offers $320,000.

·        Buyer B shoots all the way up to $329,000 – the offer which is accepted.

In this scenario, Buyer B not only paid $13,000 more than Buyer A was about to pay, but also paid $8,000 more than needed to beat Buyer A’s top price.

Great news for the seller, for sure — but less exciting for the buyers, since what was a great deal just becomes so-so. That’s why I advise my buyer clients to do their best to remain emotionally detached. I suggest deciding on the true value you believe the home is worth, then sticking to it, no matter what!

Whether you are selling or buying houses for sale in  Centennial   Cherry Hills Village   Greenwood Village   Lone Tree, I’m here to watch out for your best interests in every situation. Call me today to discuss a plan that works for you!

Jason Peck is part of the Carr Peck & Associates at Keller Williams. He has been recognized locally and nationally as in expert in real estate. Locally he is 6th in Denver Metro home sales out of 5,000 agents and has been recognized by the Wall Street Journal and Real Trends as one of the top selling agents in the country.  He is co-author of the National Best Selling Book, “The New Rise in Real Estate”. For more information feel free to  contact him  or call 720-446-6301.

Photo provided by freedigitalphotos.net


Jason Peck Headshot
Author:
Phone: 720-446-6301
Dated: April 23rd 2013
Views: 3,798
About Jason: ...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Open House 3745 S Walden Way Aurora CO 80013 - HOME FOR SALE 3745 S WALDEN WAY
Remodel With Main Floor Master And Stunning In Law Suite - Open House on Sat 9/16 from 1 pm -
Open House At 13676 E 5th Pl Aurora CO 80011 - Open house Monday, 9/11 from 2-4pm
Open House In Columbine West Neighborhood - 8212 W Quarto Drive Saturday

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Keller Williams Realty Downtown LLC
901 Auraria Parkway Suite 301
Denver, CO
720-279-9925


Other Locations