Seller Multiple Counter Offer Situation—EXPLAINED! | San Diego Real Estate | The Real Estate Jedi™

Seller Multiple Counter Offer Situation—EXPLAINED! | San Diego Real Estate | The Real Estate Jedi™

What in the world is a seller multiple counter
offer, and how do they work? Often, in competitive seller markets or even
just in a high-demand neighborhood or community, you’ll run across a “Seller Multiple Counter
Offer” situation. Now what this means is simply that the seller has received more than
one offer on their property, and rather than just counter one of the offers, they decide
to submit multiple counter offers simultaneously. Now, if one or all of the buyers receiving
the multiple counter offer ACCEPT the offer—unlike a regular counter-offer—there is still no
binding contract YET. The seller still has the final pick of the offers, and in order
for a binding agreement to be made between the parties, the seller will sign and accept
the one that makes most sense to them. Also know that the terms on these multiple
counter offers do NOT have to be identical. For example—let’s say that buyer number
ONE submits a five-hundred thousand dollars CASH offer with no loan contingencies and
a twenty-five day close with a three thousand dollar earnest money deposit, buyer number
TWO offers five hundred and ten thousand with a thirty day close, ten thousand dollar earnest
money deposit AND they want the playground in the back to stay, and let’s say buyer
number THREE offers five hundred and fifteen thousand with a ninety day close and five
thousand dollar earnest money deposit. Now there are multiple ways a seller can submit
multiple counters. One way is that the seller makes personalized counter offer terms based
on what that particular buyer had offered. For example—let’s say the seller’s biggest
priority is to sell for at LEAST five hundred thousand dollars, but they also need to close
FAST—let’s say they have a job transfer in one month. So the seller counters buyer number ONE saying
“Purchase price to be five hundred and five thousand dollars, earnest money deposit to
be twenty-thousand so I know you’re serious, and since you’re buying CASH, I want to
close in fourteen days instead of twenty-five.” He’s saying, “Hey, I can live with a lower
price even though I have higher offers, so long as this buyer will close fast so I can
focus on my job transfer.” Then let’s say the seller counters buyer
number TWO and says: “Purchase price to be five-hundred and fifteen thousand since
they want my kids’ playground, and I’m OK with the thirty day close and ten thousand
dollar deposit.” And let’s say they counter buyer number
THREE saying: “close of escrow to be thirty days from acceptance instead of ninety.” See, the the terms of the counters could be
all different, based on what makes most sense to the seller. If he gets less money but a
quicker close, that will minimize his stress when he’s worrying about his job transfer.
Or he’s saying, “sure, I’d be ok with a longer escrow, so long as I get a higher
sales price.” And if buyer number TWO doesn’t accept, well hopefully buyer number THREE
will and I’d be ok with that too. Now look, all three of them could accept the
seller’s counter, but the seller will still ultimately have the last pick. Then again,
there’s always the chance that all three could also not accept, but that’s not likely
given the reasonable changes in the counter offers. Now another way to approach this is that the
seller writes on the counter: “Buyers to submit their highest and best offer.” In
this case, it gives all the buyers being countered the chance to decide on their bottom line
and submit an offer at the highest price they’re willing to pay. Ugh! This one’s no fun for
buyers because they don’t know what the other buyers will be submitting! And hey often,
that psychology works, because the buyers know this might very well be their last shot
at getting the property so they go all in and offer their absolute highest. Hey—sometimes the other buyers will just
leave their offers as it was and go with it, but you never know. In this situation, it’s
important for the buyers to have a rationally decided “bottom line”—an amount that
they would not regret paying were they to get their offer accepted, but also not at
an amount that they would regret NOT offering MORE than, in the case that their offer is
NOT accepted. Make sense? So when you’re a buyer in a seller multiple
counter offer situation like this, you can’t predict what the other buyers are going to
do, so make sure you come back at a number that you can live with, whether or not your
offer is accepted. I’ll see you in the next video. 😀

3 thoughts on “Seller Multiple Counter Offer Situation—EXPLAINED! | San Diego Real Estate | The Real Estate Jedi™

  1. could not have explained it better myself. Well done.

  2. This is an excellent video. You are very well spoken and are enjoyable to watch. Thanks for sharing!

  3. Thanks, very informative w/ scenarios… I mean this in a good way, but you look like and sound like a mashup of Christian Bale & Shia LaBeouf. lol

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