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How a multi-offer changes everything

Apr 24, 2019

We might have dodged a bullet with our last almost-purchase, but it was still a bit heart breaking. However, you’ve gotta get back on the horse etc, so back to TradeMe and open homes we went.

And you guessed it, we found another house. The house was listed on a Thursday, we saw it Friday, and it was going to multi-offer the following Tuesday.

But what exactly is a multi-offer again?

 

Multi offer: This is where more than one party is putting an offer in. There will be a deadline for when the offers are due. The Agent presents all the offers to the vendor at the same time and the vendor will choose which offer they like the best. There are no promises that the vendor will come back and negotiate with you, so it’s really important to put in the best offer you can.

Many houses in the first home buyers price bracket go to multi offer, which means you’re competing with other people for the same house and you really need to put your best foot forward.

Putting your best foot forward means putting in as few conditions as you can without putting yourself at risk. As we saw in Episode 6, conditions can really save your bacon. But you also don’t want to miss out on the house. It’s a fine line, and what you can do will depend on your individual circumstances.

There are two good things about a multi-offer. The first is that straight after the offers are due, the Agent usually takes  them all to the Vendor straight away, and you get a decision really quickly. The second benefit is that because everyone has submitted their very best offers, you generally won’t need to negotiate any further with the Vendor.

So while you wait with baited breath to find out if we got it, I thought it would be useful to get an agent’s tips on this house-buying game…

 

A Salespersons Perspective

I recently had a chat with a local real estate salesperson and asked her what she thinks all first home buyers need to know. Here are her pearls of wisdom:

  • The deposit you specify in the offer doesn’t need to be 10%. It’s just an offer of goodwill, and it should be money that’s easily accessible for you.
  • Get in touch with the agent straight away if you want to put an offer in - don’t wait for them to call you.
  • As a first home buyer, you will need to compromise. Figure out what your bottom lines are, and you’re willing to compromise on.
  • Agents do care – sometimes they can’t show it, but often they’re gutted for you when you don’t get the house!