The Gist:

• Definition of Multiple Offers: You have a property for sale in Alberta, and offers from different buyers come in at the same time. The seller can choose whether or not to negotiate with multiple parties unbeknownst to each party, or to let them know they’re negotiating with multiple parties. 

• The regulatory body wants equality between buyers and sellers, so there are rules in place from actually turning it into a “bidding war” -- Like you would see at an auction. 

• If the seller comes back to these two buyers who put an offer in and lets them know that it is a multiple offer situation, these buyers will likely put in competitive offers, which will often look like giving their final offer instead of lowballing and hoping for a counteroffer from the sellers. 

• There are three prices to consider here: 

  • List price - what the seller wants for their home;

  • Offer price - What the buyer wants to pay for the home; 

  • Market value - What the home is actually worth based on location, characteristics, and condition. 

• When a home is having multiple people sending in offers, it usually means the home is AT or BELOW market value, which is why it is attracting so much attention. 

• As a seller, how do you get multiple offers? Some REALTORS® will say it’s random, and you probably don’t want those people representing your property sale. 

  • There needs to be systems in place to make sure you don’t miss any opportunities. The listing agent should know how much traffic a home is and should be getting, how many showings have taken place and contact information for each one, and also being able gathering feedback after each showing.

  • If a house catches one offer, the agent will then be able to go back to any parties who viewed the home and placed it in their Top 3 Houses via showing feedback and ask if they would like to enter into multiple offers. 

• As a buyer, entering into multiple offers can be very nerve-wracking. 

  • The key element for buyers is to know what the market value of the home you want is, and should help you understand where your safe number is. 

    • A safe number is the amount that you can walk away with when you sell the home down the road. 

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