As Mexico real estate markets heat up again, you may find yourself in a multiple offer situation. How do you handle multiple offers in the Mexico real estate market? Today, I’ll provide some tips for both buyers and sellers.
- Sellers have several ways to deal offers. Sellers can accept the “best” one or inform all potential purchasers other offers are “on the table”. They can “counter” one offer while putting the other offers to the side while awaiting a decision on the counter-offer, or they can “counter” one offer and reject the others.
- The listing broker can offer suggestions and advice, but decisions about how offers will be presented or dealt with are made by the seller.
- As a buyer, you have advantages and disadvantages to the various negotiating strategies you can use in multiple offer negotiations. Here are a few:
A. A low initial offer may result in buying the property you desire for less than the listed price.
B. You take the risk that another buyer’s higher offer may be accepted.
C. A full price offer may result in paying more than the seller might have expected.
D. In some cases, there can be several full price offers competing for the seller’s attention, which can cause the price to go up higher than the original listed price.
E. Your buyer agent should explain the pros and cons of negotiating strategies. The decisions, however, are yours to make.
F. Listing brokers should follow ethical instructions from their clients in the same way that buyer agents need to follow lawful, ethical instructions from their clients.
G. Realize that as buyer, your broker likely has other buyers who may be interested in the same properties as you. Ask your broker how offers and counter-offers will be presented and negotiated if more than one of his other buyers are trying to buy the same property.
H. Realize that your agent’s advice is based on past experience and there are no guarantee as to how any particular seller will act or react in a specific situation.
- You may be faced with multiple competing offers to purchase your property. Your broker can explain various negotiating strategies.
- You can accept the “best” offer, you can inform all potential purchasers that other offers are “on the table” and invite them to make their “best” offer, you can “counter” one offer while putting the other offers to the side awaiting a decision on your counter-offer or you can “counter” one offer and reject the others. Your strategies may include:
A. Inviting buyers to make their “best” offers may produce better offers than those “on the table”
B. You may discourage buyers who feel they’ve already made a fair offer resulting in them breaking off negotiations and their pursuing other properties.
C. Your broker will explain the pros and cons of these strategies and possibly other negotiating strategies. The decisions, however, are yours to make.
D. Appreciate that your listing broker’s advice is based on past experience and is no guarantee about how any particular buyer will act or react in a specific situation.
This article is based upon legal opinions, current practices and my personal experiences. I recommend that each potential buyer or seller conduct his/her own due diligence and review.