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Health & Fitness

Multiple Offers in Marin Real Estate

When a desirable home is priced right multiple offers may ensue.

Contrary to popular belief, the sky is not falling.  The end is not near.  And people are not giving away properties. 

For a time it may have seemed that way, but this is Marin County.  On the morning of this writing the rest of the country is sweltering under an oppressive heat wave (is there any other kind?), while Marin temperatures will comfortably be in the high 70’s and low 80’s, kept in check by our friendly neighborhood seasonal fog bank.  We are bordered by San Francisco Bay and the Pacific Ocean, and we’re driving distance to the snow.  The relatively high paying job centers of San Francisco and the Silicon Valley are close.  People want to live in Marin County and they are willing to pay for it.  Not surprisingly sometimes more than one person is willing to pay the asking price and even more on a house.

When I was still in my rookie year as a Realtor back in the spring of 2005 I remember putting a house on the market in Novato.  People were clamoring to get into this three bedroom two bathroom house with less 1400 square feet that needed a lot of work.  So I set up a barricade, that is to say I designated an offer date and time.  I recall the scene vividly, meeting with my seller who was in her 80’s and her daughter and nephew.  Throughout the afternoon Realtors brought in sealed envelopes.  At 5 p.m. we opened them up, one after the other.  It was like Christmas! 

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The winning offer was faxed in at about 7 p.m.  The Realtor shrewdly waited until all offers had been submitted so there was no chance we could ‘shop’ her offer around.  It was $100,000 over our asking price!  It was a Merry Christmas in March indeed, and we managed to set up my client’s retirement plan right then and there by accepting the most generous offer.

The buying climate is no longer so frenzied in our market, but I’ve been in several multiple offer situations this year representing both buyers and sellers.  When do sellers and their agents decide to set up an offer date and hope for more than one offer? 

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If you are getting a lot of inquiries on a property, other agents asking when you are looking at offers, you might want to consider taking the hint.  If more than one agent asks about making a preemptive offer, chances are you’ve got a pretty hot property that could attract more than one offer if given some time on the market.  If there is a lack of inventory, the property is unique and all the previously mentioned stars are aligning, you might want to set an offer date.

The issue with setting an offer date is that you may end up turning off a buyer who would otherwise have made an offer on the property.  The chances are though that such a buyer really didn’t want the property enough to make an attractive enough offer.  The key in setting an offer date is to not turn any buyers off.  Realtors want to keep buyers engaged.  As a seller’s agent you let anyone interested know that you are looking for just one good offer.  Ultimately that’s all it takes anyway.

If you are representing a buyer of course you would prefer to make your offer when your buyer is ready and not when the seller’s agent dictates.  You don’t want competition.  You want to make the offer on your buyer’s terms. 

Ultimately that’s what you’ll do anyway, and you will make the offer that your buyer is most comfortable with in light of the circumstances.  You don’t let the prospect of a seller reviewing more than just your offer deter you because you don’t know where those other offers will be anyway.  They could be less than the asking price.  Most likely though they won’t be $100,000 over. 

Take your best shot.  Make the offer attractive.  If it’s the house your buyers want, it will be worth it.   

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