1. Handling Multiple Offers and Multiple Buyers Presented By: Andy Hemmings 18 Year Texas Real Estate Veteran Broker, Trainer, Educator Founder and CEO of Clearly Closing

2. 2 MULTIPLE OFFERS -Demand exceeds supply in many markets, leading to Multiple Offers. -We have a professional responsibility to advise and negotiate in the best interest of our clients.

3. 3 MULTIPLE OFFER TIMELINE HOME ON THE MARKET OFFER PRESENTATION AND COMPARISON SELLER COUNTERS OR ACCEPTS NEGOTIATE BACK UP OFFERS SELLER RESPONSE MULTIPLE BUYERS MAKE AN OFFER WAIT OR WITHDRAW. MORE OFFERS CAN COME IN WITHDRAWAL, ACCEPT OR MODIFY ONE OFFER UNDER CONTRACT. BACK UP OFFERS FOR OTHERS BUYER SELLER

4. 4 CODE OF ETHICS HOME ON THE MARKET OFFER PRESENTATION AND COMPARISON SELLER ACCEPTS NEGOTIATE BACK UP OFFERS SELLER RESPONSE MULTIPLE BUYERS MAKE AN OFFER BUYERS CAN WITHDRAW OR MORE OFFERS COME IN WITHDRAWAL, ACCEPT OR MODIFY ONE OFFER UNDER CONTRACT. BACK UP OFFERS FOR OTHERS CODE OF ETHICS Article 1-6: “REALTORS® shall submit offers and counter- offers objectively and as quickly as possible.” Present all offers promptly. Don’t sit on an offer hoping another better offer might come in.

5. 5 CODE OF ETHICS HOME ON THE MARKET OFFER PRESENTATION AND COMPARISON SELLER ACCEPTS NEGOTIATE BACK UP OFFERS SELLER RESPONSE MULTIPLE BUYERS MAKE AN OFFER BUYERS CAN WITHDRAW OR MORE OFFERS COME IN WITHDRAWAL, ACCEPT OR MODIFY ONE OFFER UNDER CONTRACT. BACK UP OFFERS FOR OTHERS CODE OF ETHICS Article I: Treat all parties honestly.

6. 6 CODE OF ETHICS HOME ON THE MARKET OFFER PRESENTATION AND COMPARISON SELLER ACCEPTS NEGOTIATE BACK UP OFFERS SELLER RESPONSE MULTIPLE BUYERS MAKE AN OFFER BUYERS CAN WITHDRAW OR MORE OFFERS COME IN WITHDRAWAL, ACCEPT OR MODIFY ONE OFFER UNDER CONTRACT. BACK UP OFFERS FOR OTHERS CODE OF ETHICS Article I: Treat all parties honestly. Ie. Provide all parties with the same information.

7. 7 CODE OF ETHICS HOME ON THE MARKET OFFER PRESENTATION AND COMPARISON SELLER ACCEPTS NEGOTIATE BACK UP OFFERS SELLER RESPONSE MULTIPLE BUYERS MAKE AN OFFER BUYERS CAN WITHDRAW OR MORE OFFERS COME IN WITHDRAWAL, ACCEPT OR MODIFY ONE OFFER UNDER CONTRACT. BACK UP OFFERS FOR OTHERS CODE OF ETHICS Article 1-7: “REALTORS® shall continue to submit to the seller/landlord all offers and counter-offers until closing or execution of a lease unless the seller/landlord has waived this obligation in writing.”

8. 8 BOTH SIDES OF THE NEGOTIATION BUYER’S AGENT LISTING AGENT

9. 9 SELLER NEGOTIATIONS HOME ON THE MARKET - Receiving multiple, competing offers is a possibility. -You will give them advice and opinions, but the decision is theirs to make.

10. 10 SELLER NEGOTIATIONS OFFER PRESENTATION AND COMPARISON Price is not the only consideration

11. 11 SELLER NEGOTIATIONS SELLER RESPONSE Options: -Make a counteroffer to one prospect. -Reject all offers – Highest and Best -Do nothing. -Invitation to ResubmitInvitation to Resubmit

12. 12 BUYER NEGOTIATIONS MULTIPLE BUYERS MAKE AN OFFER -Make your first offer your best offer -You will give them advice and opinions but the decision is theirs to make “Make an offer such that if you don’t get the home, you are not disappointed because you weren’t willing to go any higher anyway.”

13. 13 BUYER NEGOTIATIONS MULTIPLE BUYERS MAKE AN OFFER Ways to Improve Offer: (other than $) -Seller Temporary Lease (with caution)Seller Temporary Lease (with caution) -Buyer Letter (with caution)Buyer Letter (with caution) -More Earnest Money -Shorter Option Period -Escalation Clause?Escalation Clause?

14. 14 BUYER NEGOTIATIONS WAIT OR WITHDRAW. MORE OFFERS CAN COME IN While Waiting on Seller Response…. - Buyers can withdraw….or wait. -New Buyers can come in.

15. 15 BUYER NEGOTIATIONS WITHDRAWAL, MODIFY OR ACCEPT Buyer Options after Seller Response: -Withdraw -Make a counter offer -Accept the counter offer

16. 16 BACK UP OFFER NEGOTIATE BACK UP OFFERS ONE OFFER UNDER CONTRACT. BACK UP OFFERS FOR OTHERS Addendum for Back Up Offer Once an offer is accepted….

17. 17 Negotiating Multiple Offers Case Study

18. 18 COMMON QUESTIONS My offer was first. Shouldn’t it be presented first? No, there is no “priority of presentation.” Is buyer or seller compelled to respond in a certain time frame? No, Texas Contracts do not have time response provisions. How do I withdraw an offer? Call the agent, and follow up with an email. There is no form.

19. 19 THANK YOU!! Questions??