5 Golden Rules of the Multi-Offer

Getting multiple offers is a great result for a vendor and their agent – it means the hard work to prepare the property for sale, promote and expose it to buyers has paid off - but it can be a confusing and emotionally-heightened process to work through for buyers and vendors alike. 

Firstly, what is a multi-offer situation?

A multi-offer situation arises when two or more interested buyers make a written offer on the same property at the same time; the vendor can choose to accept the offer that is most favourable to them or start negotiating. The process gives each interested party a fair opportunity to put their best offer forward.

While an agent’s responsibility is to achieve the best price possible for their vendor, the process must be fair and transparent for all parties. Steve, Lesley and Georgia have 5 golden rules for running a successful and professional multi-offer process.

1. Get it in writing

“Two documents are non-negotiable in our multi-offer process; the written offer to purchase and the multi-offer acknowledgement form. There must be at least two competing signed offers to trigger a multi-offer situation. We then inform all interested buyers that they are in a multi-offer situation, clearly explain the process and have them sign an acknowledgement form. This ensures the process is transparent and everyone understands the process.”

2. Communicate and over-communicate

“We always keep buyers in the loop to minimise the stress. We’ll always advise them if the situation changes. Our potential buyers will know when we are going to present offers and when they can expect to hear from us, even just to say the vendor is considering the offers overnight.

For the vendor, it’s our job to help them understand the process, all potential scenarios and options available to them. We’re in regular communication so they are always up to date with how the process is going. Once the offers are presented, it’s our job to help them go through each offer, advising on the position of interested parties and whether their offers are final or they may be willing to negotiate. 

If everyone is fully informed at all stages, we don’t have any problems.”

3. Be transparent

"The best way we’ve found to minimise the anxiety around a multi-offer is to give buyers as much information as possible, starting with letting them know they are not the only interested buyer, detail on how the process works and counselling how they can maximise their chances of having their offer accepted. We always make ourselves available to answer their questions and never keep anyone in the dark.

Details that remain confidential from other buyers are the details of competing offers and personal information such as names and addresses."

4. Advise buyers to get advice

"It’s in everyone’s best interest for buyers to be fully informed and comfortable when making their offer. While we give advice around putting together an attractive offer and putting their best offer forward, we always advise buyers get professional independent advice and do thorough due diligence. This could be having a valuation done for their bank, getting a building inspection done or advice on what conditions to put in the offer to minimise their risk."

5. Set up your vendor for success

While it’s fantastic to have buyers competing to secure your home – the choice isn’t always straightforward and it’s our job to help them navigate the process and get the best result.

A vendor has three choices: accept an offer, reject all offers or enter into negotiations with a buyer. In making their choice they will weigh price, any conditions, settlement dates, if a buyer is approved for finance or how likely a buyer is to confirm the contract. We assist the vendor in going through each offer, offering advice on the situation of the buyer, to ensure they have all the information available to make the best decision."

By sticking to these five steps, buyers can navigate the multi-offer process successfully, securing their dream home and vendors can achieve a premium sale result.