Making an Offer and Handling Multiple Offers for Home Buyers

Making an offer on a home is one of the most exciting steps in the home-buying journey. It’s the moment when you’re saying, “This is the one!” However, in a competitive market, getting your offer accepted requires strategy, preparation, and sometimes multiple offers to increase your chances.

But what happens if more than one of your offers gets accepted? Don't worry—we’ll cover everything you need to know about making an offer, handling multiple offers, and your next steps if more than one offer is accepted.

Step 1: Preparing to Make a Strong Offer

Once you’ve found the right home, it’s time to put in an offer. A strong offer isn’t just about price—it includes terms, contingencies, and negotiation strategies that make it attractive to the seller.

✅ 1. Know the Market Before You Offer

Before submitting an offer, work with your real estate agent to analyze the market.
✔ Is it a buyer’s market (where buyers have more negotiating power)?
✔ Is it a seller’s market (where multiple offers are common)?
✔ What have similar homes in the area sold for recently?

Pro Tip: In a seller’s market, homes often sell above asking price and move quickly, so be prepared to act fast.

✅ 2. Determine Your Offer Price

Your offer should be competitive but within your budget. Consider:
✔ The home’s listing price – Is it fair based on comparables?
✔ Your pre-approved mortgage amount – Can you comfortably afford it?
✔ Your maximum budget – Don’t stretch beyond your financial comfort zone.

🔹 Pro Tip: In a competitive market, offering slightly above the asking price (by 1-3%) can make your offer more appealing.

✅ 3. Strengthen Your Offer with These Key Terms

🔹 Earnest Money Deposit (EMD): This shows the seller you're serious. A standard EMD is 1-3% of the home price but offering more can make your offer stand out.

🔹 Loan Type: Some loan types (such as conventional loans) are viewed as stronger than FHA or VA loans due to fewer restrictions.

🔹 Contingencies: Fewer contingencies = stronger offer. However, some essential contingencies include:
✔ Inspection Contingency – Allows you to back out if major issues are found.
✔ Appraisal Contingency – Protects you if the home is appraised below your offer price.
✔ Financing Contingency – Ensures you can back out if your loan falls through.

🔹 Flexible Closing Date: If the seller needs extra time, offering a flexible closing timeline can work in your favor.

🔹 Personal Letter (Optional): A heartfelt letter to the seller can make a difference—especially if the seller has an emotional attachment to the home.

Step 2: Submitting Your Offer & Negotiating Terms

Once your offer is prepared, your real estate agent will submit it to the seller’s agent.

💡 Possible Seller Responses:

✔ Accepted: Congratulations! The home is under contract.
✔ Counteroffer: The seller may propose different terms, such as price or closing date.
✔ Rejected: If rejected, you can submit a new offer or move on to another home.

Pro Tip: If a counteroffer is made, be ready to negotiate quickly to avoid losing the home to another buyer.

Step 3: Making Multiple Offers on Different Homes

In a competitive market, buyers often submit offers on multiple homes to increase their chances of getting an acceptance.

✅ Rules for Making Multiple Offers

✔ Disclose to your agent that you’re making multiple offers—this helps them strategize.
✔ Prioritize your top choices—don’t submit offers on homes you don’t genuinely want.
✔ Ensure you can afford any home you’re offering on.

🔹 Pro Tip: Work with your agent to structure offers with different expiration times so you can manage responses effectively.

Step 4: What to Do If More Than One Offer Is Accepted

If two or more sellers accept your offers, you need to make a quick decision.

✅ Your Options If Multiple Offers Are Accepted:

✔ Choose one home and cancel the other offer(s).
✔ Negotiate further with both sellers before making a final choice.
✔ Proceed with both if you plan to buy multiple properties (for investment purposes).

❌ How to Back Out of an Accepted Offer

If you decide not to move forward with one of the homes, you must formally withdraw from the contract.

🔹 Ways to Exit a Contract (Without Losing Money):
✔ Inspection Contingency: If the home inspection reveals major problems, you can legally back out.
✔ Appraisal Contingency: If the appraisal is lower than the purchase price, you can renegotiate or withdraw.
✔ Financing Contingency: If your loan gets denied, you have the right to cancel.

If none of these apply, you may have to forfeit your earnest money deposit (typically 1-3% of the home price).

Pro Tip: Before making multiple offers, ensure your offers are structured to allow flexibility in case you need to cancel.

Final Thoughts: Be Strategic and Confident When Making an Offer

Making an offer is a crucial step in buying a home, and handling multiple offers requires careful planning.

📌 Key Takeaways:

✔ Know the market before submitting an offer.
✔ Make a strong offer with competitive pricing, contingencies, and terms.
✔ If making multiple offers, be prepared to move forward with one home.
✔ If more than one offer is accepted, withdraw from the others properly.

Ready to Make an Offer? Let’s Talk!

Buying a home requires expert negotiation and strategy. If you’re ready to submit offers and want to make sure you’re getting the best deal possible, I’m here to help!

🏡 Let’s Find Your Dream Home and Get Your Offer Accepted! 🏡