Don’t be afraid of multiple offers. You still have some control. There are a few things that can happen if you get into competition. The seller can accept your offer and you will have bought a house. Or the seller can accept someone else’s offer and you need to keep looking. Or the seller can work with your offer, and sign it back to you with a counter-offer that you can accept or decline, and perhaps even counter-offer back to them.
There is another scenario that I despise, but unfortunately it happens: the seller has a number of offers on the table, and decides to send them all back for improvement. Personally, I think they should just choose the best one and accept it or work with it. In the case where you are sent back to improve, you have control and choices. The seller is actually at risk if the offer is signed back to you and a higher figure is requested. You can simply walk away from the deal, as you are not obligated to increase your money or change any terms of the agreement. You can resubmit your offer as is, or you can make some improvements to the offer by way of increasing the money or removing a condition or changing any term on the contract that the seller wasn’t happy about.
Just remember, although emotions run high and it’s not the most fun scenario for buyers, you should keep your head about you, and understand that you are always in control.
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Reprinted from Realty Check: Real Estate Secrets for First-Time Canadian Home Buyers by Sandra Rinomato Copyright (C) 2009 by Sandra Rinomato. Reprinted with permission of the publisher John Wiley & Sons, Inc.