Multiple Offers are back

MULTIPLE OFFERS ARE BACK.? As the 2024 real estate market in Nova Scotia heats up, a notable trend is emerging that's capturing the attention of both buyers and sellers: the prevalence of multiple offer situations. This phenomenon, increasingly common in today's competitive market, underscores the dynamics of supply and demand in the province's housing sector. There's also the 'phenomena' that many "Holding Offers" to drive multiple offers, are getting left with no offers at all.

So, for those navigating the Nova Scotia real estate landscape, understanding what multiple offer situations entail is crucial.? And how to navigate it both as a buyer, or a seller.

What is a Multiple Offer Situation?

A multiple offer situation occurs when a single property receives several purchase offers within a short period, often leading to a bidding war among potential buyers. This scenario typically unfolds in a seller's market, where the demand for homes surpasses the available inventory. With more buyers than available properties, listings can attract numerous bids, pushing the final sale price above the initial asking price.? When you see "holding offers Until" or 'reviewing offers on'.. with a specific date and time, this is the indication that the 'expectation' is that the property will go for more than asking price, and with multiple offers..

How Does It Work?

In a multiple offer scenario, the seller, often guided by their real estate agent, has several options on how to proceed:

• Accept the Best Offer: The seller can choose the most appealing offer based on price, conditions, or both.
• Counter One Offer: The seller may counter one offer while leaving others in a pending state.
• Call for Final Offers: Sellers might invite all bidders to submit their final and best offers by a specific deadline, essentially sparking a bidding war.

?What Buyers and Sellers Should Know

For Buyers:

Preparation is Key: Have your financing in order and be ready to act quickly.

Make Your Best Offer:* In a competitive market, there's often no second chance, so make your initial offer strong.

Minimize Conditions: Sellers favor offers with fewer contingencies. However, never compromise on essential conditions like home inspections.

Golden Tidbit:

*2 Very specific questions that my clients hear me ask in this situation every time, that always help navigate an offer amount for a buyer in these situations.

ONE - If your offer is rejected, and they accept an offer amount from someone else that turns out to be "xx" amount, would you be upset? And would have offered that in hind site?

TWO - If you're offer is accepted! would you question if you paid too much and why you won!? Making you feel uncomfortable?

These two question in my experience, always help land on a number that the buyer ends up being great with; either way.? It's the correct mix of gauging how much you?really do love the home, and a number that makes you comfortably, uncomfortable.?

For Sellers:

Price Strategically: While a high price can be tempting, setting a slightly lower asking price can generate more interest and potentially lead to a multiple offer scenario. Particularly if you, or your and your agent are 'holding offers'!!

Consider All Offer Aspects: The highest bid isn't always the best. Consider closing dates, conditions, and the buyer's financial stability.

Transparency: Be clear about your process for handling multiple offers to maintain fairness and integrity in the bidding process.

Ethical Considerations:

In Canada, and specifically in Nova Scotia, real estate agents are bound by ethical guidelines to ensure fairness and transparency in multiple offer situations. Agents must disclose the existence of multiple offers to all parties involved but are not obliged to disclose the details of those offers without their clients' consent.

The Impact on the Nova Scotia Market

The rise in multiple offer situations in Nova Scotia reflects the province's growing appeal and the broader trends in Canada's housing market.

Navigating a multiple offer situation, whether as a buyer or a seller, requires strategic thinking, quick decision-making, and a thorough understanding of the market. In Nova Scotia's bustling real estate scene, these scenarios are becoming a testament to the province's desirability as a place to live, underscoring the importance of preparation and professional advice (shameless plug) in achieving successful outcomes.

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