When I was actively selling real estate in Southern California, multiple offers were a fact of life. While you may think that receiving two or more offers on one of your listings is a great situation to be in, actually it’s not. For properties that sell with a single offer, the fallout rate is 10 percent. For properties where there are two or more offers, the fallout rate increases to 50 percent.
The reason there is such a significant difference in closing rates is that buyers often feel they were unduly pressured by the multiple-offer situation. After buyers have time to reflect upon the situation, they often end up resenting both the agents and the seller. To minimize the hard feelings as well as the very real potential for litigation, here are 10 guidelines for handling multiple offers that maximize your odds for success.