Tahoe Home Buyer – What happens with Multiple Offers?

This past week I was asked by a Tahoe Home Buyer “What happens if there are multiple offers?” It’s a great question that needs to be asked as the Tahoe real estate market heats up and buyers are once again in multiple offer situations, or back-up offer positions.

Here’s the situation. I have a buyer that has found a great Tahoe home, but it’s new on the market and buyer competition is fierce. They make an offer and before the ink is even dry on the contract, the sellers’ agent lets us know they’ve gotten another offer. What happens when a Tahoe seller receives multiple offers on their property?

Seller Options for Multiple Offers:

First, buyers should be aware there are no standard rules on how a seller has to handle multiple offers that come in on their property. Here are some common Tahoe seller options:

1) Counter All Offers – Counter all offers received to get the highest and best terms. If the buyer and seller are using the California Association of REALTOR® Residential Purchase Agreement (CAR-RPA), buyers should be aware that the seller is not required to counter all offers with the same terms. Each offer can be countered with unique terms including different sales prices.

Buyer Tip: If multiple offers are all being countered, including yours, don’t just agree to the sellers’ terms, agree to the sellers’ terms and sweeten the deal by counter offering something more. It can show a seller you really want the property over your competition and swing a seller to your side.

2) Ask for the Best Offer – It’s not uncommon for the seller to ask all of the buyers for their best terms and highest price before selecting just one buyer to negotiate with. They want to be fair to everyone, but they don’t want to formally counter everyone on paper, so they verbally ask everyone for their best offer upfront and then select one buyer to negotiate out the final terms.

Buyer Tip: This is the time to give your best offer and terms. No regrets. Listen to the advice your Tahoe REALTOR® is giving you. Take a hard look at the comps and current market conditions and then give your best terms and pricing. This is your one opportunity to be selected as the buyer. Everyone has their budget limits, so respect yours, but give your best terms when asked. There probably won’t be a second chance, or do-over if your offer isn’t selected.

3) Only Counter the First Offer – Some sellers can’t decide who to counter, especially when the offers are very close in price, are similar in financing, and come in at almost the same time. So they negotiate with the first offer received. While fairness is a good thing, countering in the order the offers were received is often not in the sellers’ best interest, but I’ve seen sellers do just that, so the first one in the door can often give themselves an advantage.

Buyer Tip: If your Tahoe agent tells you to write-up your offer right now, don’t wait until the next weekend to follow-up. As crazy as this is, more than one seller has gone with the first offer received approach in the Tahoe area. If you’re going to write-up an offer, do it now!

Real estate is a local market and how multiple offers are handled here in the greater Tahoe area is going to be different than in other markets and areas. A good Tahoe agent will advise their clients how to respond based on what is best for their client.

Tahoe real estate “Dealing with Multiple Offers” buyer and seller tips

Thinking about making Lake Tahoe, California your second home? Check out the Lake Tahoe homes that are for sale here:

Want to see what condos are for sale in Lake Tahoe? Here are the current Lake Tahoe Condos listings for Sale:

For all of your Tahoe real estate needs –

Laura A. Allen | 530.414.1260 | Laura@TahoeLaura.com
BROKER ASSOCIATE, Tahoe Real Estate Agent
CalRE# 01473598
Coldwell Banker, Tahoe City, CA CalRE#01908304

All information is deemed reliable, but is subject to change, and/or correction without notice.

Tahoe Home Buyer – What happens with Multiple Offers?