Multi-Offer Process Needs Clarification

offerWhat is a multi offer and what’s all the fuss about. A multi offer occurs when more than one offer is received by the vendor for the sale of a property. The offers have come from different prospective buyers.

Complaints to the REAA suggest many home buyers feel misled by the multi offer process or as many would say – there is no multi offer process.

Without knowledge that a offer has competition, a prospective buyer can not submit a ‘best’ offer to stand a better chance of securing the property. The power therefore lies with the listing Real Estate Agent and the REAA says they want more transparency.

In NZHerald the REAA says:

The REAA says real estate agents should clearly explain the multi-offer situation and that the potential buyer has the chance to submit a new offer that should be their “best” offer.

The organisation wants all real estate agencies to have policies and procedures for the process they will follow when a multi-offer situation arises and to provide clear information to vendors and buyers.

In an ideal world this may actually happen however it’s less likely to do so unless it’s driven by REAA (Real Estate Agents Authority). The REAA should take ownership of the initiative and create the policies and procedures required for multi offers.

In the mean time as a prospective buyer be inquisitive, ask the Agent if there are any other offers and where does that leave your offer, i.e. is it good enough to secure the property.

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