Multi-Offer? Here’s What Buyers Need to Know

Finding a home you really love is exciting. Finding out there are other buyers interested too? Not quite so much! 😅

Multi-offers can feel a little daunting, particularly if you haven’t been through the process before. But with a little preparation and the right advice, you can approach one with a clear head and make an offer you’re comfortable with.

Here are a few of my tips if you find yourself in a multi-offer situation.

1. Know your limit before you make an offer

This is probably my biggest piece of advice.

Before the excitement takes over, decide what you are genuinely comfortable spending. Think about your finances, your lending position and what the property is worth to you.

It’s very easy to think, “I’ll just go a little bit higher…” when you know someone else is interested.

But you don't want to win the house and then wonder whether you’ve paid more than you were comfortable with.

2. Put your best foot forward

In a multi-offer situation, you may not get another opportunity to improve your offer.

That means it’s worth giving careful thought to your first offer rather than assuming there will be a chance to increase it later.

Think about what you are prepared to pay and make your offer reflect how much you genuinely want the property.

3. Remember, it isn't always about the highest price

This is something buyers sometimes don't realise.

A multi-offer isn't necessarily won by the person who writes down the biggest number.

The terms and conditions of an offer can also be important to a vendor. Things such as finance, due diligence, settlement date and other conditions can all form part of the overall picture.

So don't automatically think that you need to throw everything else out the window just to make your offer look stronger.

4. Keep the conditions you need

It can be tempting to remove conditions because you think it will make your offer more attractive.

But remember — conditions are there to protect you.

If you need finance approval, a building report or other due diligence, make sure you understand what you're agreeing to before you sign anything. If you're unsure, talk to your lawyer or other appropriate adviser.

A strong offer is one that is attractive to the vendor while still being right for you.

5. Think about the settlement date

Sometimes it's the little things that can make a difference.

If you have flexibility around settlement and know that a particular date would suit the vendor, that could make your offer more appealing.

It doesn't necessarily cost you anything to be flexible, so it's worth having a conversation about what the vendor is looking for.

6. Don't worry too much about what everyone else is offering

This one is easier said than done!

You won't know exactly what the other buyers have offered, so try not to spend too much time guessing.

Instead, concentrate on your own position:

What is this property worth to me?

That's the number that really matters.

7. Ask questions

If you've never been through a multi-offer before, don't be afraid to ask questions.

Your agent should explain how the process works and make sure you understand what you're signing and what happens next.

And if you need independent advice about the legal or financial aspects of your offer, speak with your lawyer, mortgage adviser or other appropriate professional.

8. And finally… don't let FOMO make the decision for you!

This is a big one.

When you find a house you love and discover there are other buyers interested, it's natural to feel that you have to win.

But take a breath.

Don't let the pressure of a multi-offer situation make you offer more than you're genuinely comfortable with.

There will always be another property.

The goal isn't simply to win the multi-offer. It's to buy a home you're happy with, at a price and on terms you're comfortable with.

My biggest piece of advice?

Decide what the property is worth to YOU — before you know what anyone else is offering.

And if you're unsure about how to approach a multi-offer, have a chat with your agent. A good conversation before you sign can make the whole process feel much less daunting.

Thinking about buying?
If you'd like to chat through the buying process, or you're not sure what to expect when you find the one, I'm always happy to have a chat. 😊