When listing a home, the goal is always to have multiple offers to consider. Bidding wars erupt when numerous buyers are interested in buying the same property. High interest builds competition and results in better offers for the seller.

Multiple offers are common in hot markets. While the Edmonton and the Canadian real estate markets are currently seeing a dip in average selling price, especially since November 2021, multiple offers on houses for sale in St. Albert, Sherwood Park, and Edmonton are still very possible.

Over the last few months, I’ve been doing a series of tips for selling and buying. I want to continue to provide helpful information, so this piece of the series will focus on tips for handling and managing multiple offers – and we’ll discuss the art of good negotiation!

Accept The Best Offer

You may sometimes receive an offer that’s miles above the rest. It may be immediately apparent which offer you want to accept. In that case, it’s straightforward to accept the offer and sell the home.

However, the highest price isn’t always the best offer. When looking at an offer with your real estate agent, you’ll want to see which offer aligns best with your priorities. For example, do you want to move as soon as possible? Or perhaps a flexible closing date matters the most to you due to personal commitments?

In general, the fewer contingencies on the offer, the better. This can include waiving home inspections to different financing options.

Bidding wars will make the offers better and better. Buyers will want to ensure that their offer rises above the others with terms that are favourable to the seller, so that they win the bid.

Leverage Other Offers On The Table

This is a phrase you’ll hear often. When a real estate agent tells buyers there are other offers on the table, they’re inviting potential purchasers to make their best possible offer. 

This means, naturally, that interest is high on the house, so the buyer will want to adjust their offer to make sure they stand out. Sometimes the buyer will include a personal letter stating what they love about the property, or even their pre-approval letter to show financial strength (both of which I would recommend).

Your real estate agent may leverage multiple offers on the table to get better offers and let buyers know that they will review all offers on a set date. In this case, it allows the buyers to return with a higher bid and the best terms possible.

Counter One Offer

Another negotiation tactic is to counter just one offer rather than ask for new offers from all bidders. This typically works best if one offer stands out from the rest, but it isn’t necessarily something you want to accept right away.

In this case, you can put the other offers to the side while you wait for a decision to be made. 

Alternatively, you can counter one offer and reject the others (however, sellers should only do this if the other offers are not worth considering).

Avoid Bad Negotiation Tactics

When there are multiple offers, it’s easy to get a little bit carried away and a little bit overwhelmed!

Avoid dragging out any responses to get more offers. Maintain positive communication with your potential buyers and remain polite, fair, and courteous at all times. This is vital to ensure that buyers don’t get annoyed and move on to other houses for sale. It’s always best to be honest about where you are in the negotiations and decision-making.

It’s also best to avoid getting greedy and passing up on a good offer. Additionally, never try and leverage a bad offer to try and get more from a good offer. If you get a great offer, then take it!

Listen to Your Real Estate Agent

As you can see, there are many pros and cons to each of these negotiation methods. The best option for you depends on many factors, including the current market, the home’s true value, the number of offers, your personal values, and more. 

A real estate agent will be able to guide you through the best negotiation tactics for your home to get you the best possible deal.

If you’re looking at houses for sale in St. Albert and think it’s time to list your home, I will make the process as smooth as possible. As one of Edmonton’s top REALTORS®, I want to help you find your new dream property.

Contact Jeneen by phone at (780) 904-4240 or via email at jeneens@remax.net.