How to Win Multi-Offer Situations: What to Expect in Week 1
Whether you're just about to jump in to buying or selling a property in today's market, the first week is very overwhelming for everyone involved. Inventory is still a challenge so understanding timing and expectations is essential no matter what side of the transaction you're on.
Entry to Market
Most properties are posted on the Multiple Listing Service (MLS) on or around Tuesday of their first week on the market with a caveat that all showings are deferred until the first Open House. That Open House is usually scheduled for the following Saturday and/or Sunday around noon.
If the property has been optimally priced and the listing agent is expecting high traffic during the Open House, they may also state that all offers are due by the following Monday or Tuesday evening (with the sellers having the option to accept an offer at any time before then).
Presenting and Reviewing Offers
The listing agent may then either present offers to the seller on a rolling basis or all together at the end of the open offer period. Occasionally, the listing agent may contact a buyer's agent or lender for more information about the offer, but usually a buyer's agent will be notified if their offer has been accepted anywhere from a couple of hours after the offer deadline up to 24 hours later.
Next Steps
Once an offer has been accepted, the Earnest Money Deposit (EMD) of $1000 is mailed to the listing agent to be held in escrow until closing. The buyer must then complete their first mortgage application within 5 business days and also select and book a home inspector to complete an inspection of the property within 10 business days of the offer acceptance date. As always, time is of the essence!
This All Seems So Fast.....
You are correct. Spending ~15min in a home with lots of other buyers in a high-pressure situation and having to make an immediate decision about one of the largest purchases of your life is very overwhelming, but the reason you work with a buyer's agent is to give you peace of mind that their knowledge and experience will protect and guide you into making the best decision for yourself and your family.
It is also important to understand that, as a buyer, you need to free up your weekends to visit as many Open Houses of new listings as you can because the deals are done by Monday. Flexibility and understanding the time commitment during the shopping process is key to finding and winning the best houses on the market.