Multiple Offers on Honolulu Real Estate & Options For Handling Them

September 12th, 2008 categories: Honolulu Real Estate 101

I know you must find it shocking for me to discuss multiple offers on Honolulu real estate, as many people assume the market is slow. Believe it or not, I have been having multiple offers on a number of my listings.

So how can one handle more than one offer on a property? To make this simple, let’s first assume that each offer is substantially the same, because if one offer is significantly better the other offers, it may be best to work with the strongest offer. Here are your options.

1. Go back to all parties and tell them that you have multiple offers and that they have until a certain date and time to present their best offer. Once those offers are received, the seller can then pick the best one with which they would like to work.

2. Work with the offers in the order that they were received. Comment, if I represent a seller, I have observed that this is not the best way to get to the best buyer, as you are letting the clock decide who is best to work with. Just because a buyer delivered their offer first, does not mean that they are the best buyer.

3. Issue multiple counter offers. With the proper contractual language, a seller may issue simultaneous counter offers to multiple parties. In the event that more than one counter offer is accepted, then the language should allow the seller to choose the contract they want to work with and cancel the rest.

There are variations of these methodologies, but in general these are your options. When I represent a seller, I find the third option to work the best. It positions a seller to be able to have more than one qualified buyer from which to choose and it enables the seller to create terms and conditions that best meet the seller’s needs.

Today’s picture was taken from the hiking trail behind my house. It is looking over the upper end of Kilauea Avenue, Kahala, the Waialae Golf Course and you can see Blackpoint on the right.

OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices

This entry was posted on Friday, September 12th, 2008 at 10:08 am and is filed under Honolulu Real Estate 101. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.