Are there any risks with multiple offers?

As a Realtor® one of the benefits of our business is that we have continuing education classes that we must take in order to maintain our real estate license. This week I attended, “Handling Multiple Offers”, which in many locations of the Richmond area real estate market is extremely pertinent. This is certainly not the case everywhere, but in the ultra-high-demand areas such as the Fan, Museum District, near West End, and some other urban and “high walk-score” locations, it is absolutely the case.

If you are not familiar with these situations you should know that multiple offers, with extremely favorable terms and conditions for sellers, highest and best offers, escalation clauses, and all-cash deals are extremely frequent. Much of the conversation and questions in our class focused on what buyers are doing to make their contract rise above others to gain the seller’s attention. Our presenter, an attorney, was quick to point out the risks and rewards of certain transactional behaviors.

“As is” purchase agreements where the buyer is waiving their inspection rights are increasingly popular. The risk and burden it places on the purchaser is extremely high and should not be considered with a light heart. It sometimes means the difference in getting a property, but if you have lost the opportunity to ask for repairs, or the chance the void the contract, or you don’t have the funds to take care of problems on your own, it is not likely to be the best action you can take. Consider your decisions carefully and engage a licensed Realtor® to be your most trusted advocate in any real estate transaction. The savings to you could be priceless!

 

This article is to be featured in RTD “Ask the Expert” 4/29/18

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