In West Michigan, the transition from a sluggish market to a market on fire has been fast and furious over the past 18 months. At first, many were hesitant to believe that a transition was actually happening. While serving as the President of the Grand Rapids Association of REALTORS in 2011, we had begun to track an interesting trend which indicated that housing prices were stabilizing.
This was in spite of national indicators that predicted that our recovery would be delayed until approximately 2023, there were encouraging indicators that this dire prediction might not prove true. Of course, there was a lot of caution. After all, our area had witnessed some of the most grueling aspects of the economic recession as short sales and foreclosures at one time constituted more than 2/3 of all transactions in the market place.
Fast forward to 2013. Times have changed! Today, housing inventory in the West Michigan market is less than three months. It is not unusual to field multiple offers for a home listing. I recently attended a national real estate conference. When asked, almost 100 percent of the attendees at one of the seminars indicated that in their markets, multiple offers and housing shortages were also becoming the norm. Especially, when the homes were priced appropriately and also showed well. (This is an important caveat)
So, what should you know about a multiple offer situation? Are there some do’s and don’ts which can help you to secure the best price while protecting your most important investment? Absolutely! In fact, the National Association of REALTORS has published an informative article to assist you in determining how best to navigate a multiple offer scenario. Some questions you might have which are answered are:
1. Does a homeowner have to accept the first offer tendered?
2. Is it possible to ask all parties to present their best offer and how is this done?
3. Who makes the decision about how multiple offers will be presented?
4. Is it possible to determine how to deal with multiple offers BEFORE the situation arises?
While this guide will serve as a handy reference, its important to understand that local customs, traditions, rules and to some extent law can also impact the way in which transactions are negotiated. It is important to work with a knowledgeable REALTOR to determine the best course of action. My experience in negotiating multiple offers is that the Golden Rule is one of the best principles to follow.
We strive to treat our clients and the parties presenting offers with the dignity and honesty which we would like rendered to us. If you have any questions about Listing your home or would like to talk more about the current state of the housing market in the Grand Rapids, Mi ~ West Michigan marketplace, please contact our office.