When listing your home for sale the most ideal situation is receiving multiple offers. Receiving multiple offers gives a seller options to choose from and gives the seller the best opportunity to get the best price possible for their listing. Here are three options sellers have to consider when receiving multiple offers.
In this article:
Accept or counter the best offer and reject the others
Counter some or all of the offers
Ask all buyers to submit their "highest and best"
Accept or Counter the best offer and reject the others
You can simply accept or counter the offer you feel is best and reject the others. If you are countering the offer, you run the risk of the buyer not accepting the counter which means there are no agreement and no other offers since you've rejected the others. The other buyers may move on to other properties, this is common when there is not a lot of inventory. It is possible to reach back out and ask them to resubmit an offer.
If accepting the best offer you may not get the best price possible. If the buyer knows there are other offers on your listing the buyer may increase their offer.
Counter some or all of the offers
You can counter the top offers you receive and reject the others. This will require disclosure to each interested buyer that the counteroffer is one of several counteroffers you are making with multiple buyers. This protects you from going under contract with multiple buyers. In this case, some buyers may back away from negotiations if they do not want to get in a "bidding war" and compete with other prospective buyers.
Ask all buyers to submit their "highest and best"
This is the option that I recommend, you can ask all buyers to submit their highest and best offers. A deadline should be attached to this communication and all interested buyers can ask to present their offers by a specific date and time. Some buyers may resubmit their initial offer or simply say that the offer made is their highest and best and like option two, buyers may withdraw as they may not want to compete.
When the deadline arrives you will then review all offers and decide to accept the highest and best offer and reject the others.
Conclusion
As a seller, how to proceed with multiple offers is entirely up to you. Your realtor may offer you advice but the decision is ultimately yours. Understanding these options can help you make an informed decision when receiving multiple offers.