How to Handle a Multiple Offer Situation as a Buyer

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Q: What exactly is a multiple offer situation?

A: A multiple offer situation occurs when a listing agent has received multiple offers to purchase from buyers on the same listing. It can be 2 offers or 6, it’s hard to tell exactly how many offers a property can expect and unless the listing agent and seller choose to share the information with the Buyer agent, sometimes we won’t know how many offers are actually in the running.

Q: We’ve heard sellers set a highest and best deadline, what is that?

A: Not all multiple offer situations will result in a highest and best deadline. The listing agent takes direction from the seller, so if the seller chooses to set a highest and best deadline here is what happens: A highest and best deadline is an opportunity for the buyer to do exactly what it sounds like- submit their highest and best offer for the property. A buyers final offer will be due by a certain time and date and after that deadline occurs the listing agent will sit down with the seller to review offers and the seller will select the offer that is best for them.

Q: So does that mean whoever offers the most for the house will have their offer accepted by the seller?

A: Not necessarily. In some cases, yes. In some cases though, a seller might be more likely to choose a cash offer, an offer with no closing costs assistance, an offer not contingent on an appraisal, an offer with a very small due diligence period, or an offer that can close quickly even if that buyer has offered a little bit less in terms of price. We can’t answer this question with 100% certainty though because it’s ultimately the sellers choice and each seller has a different situation and motivation for selling their home. It’s important to note though, that these types of contingencies (or lack of) might not make for the best situation for you as a buyer and that’s where your real estate agent can lend professional opinion as well as the pros and cons of these contingencies.

Q: Does a multiple offer situation mean the house will sell for more than list price?

A: Not always, but a lot of times that is the case. We’ve seen situations where a home has sold for $50,000 more than list price, $1,000 more than list price and everything in-between. Each home presents a totally unique situation. A lot of times a multiple offer situation will occur when a listing first comes on the market because it’s new and everyone is just seeing it for the first time, however sometimes two or more buyers will show interest in a home that has been on the market for a little while and it just so happens that there is more than one offer. This can also occur after a price reduction on a home that has already been listed for a period of time. In these situations, sometimes a home will sell for less than the listing price even though there were multiple offers.

Q: So, what do you suggest I offer?

A: As much as we want to answer this, we can’t! Here’s what we tell our buyers: offer what you feel comfortable with. If you’re comfortable going over the listing price by $2,000 then great, if you’re only comfortable with a full price offer then that’s fine too. We don’t want you to regret a decision, so it’s important to make sure you evaluate the comps that your real estate agent sends to you when determining your offer price. If we find our buyers in this situation we help to explain the comps, offer guidance, help buyers to make their offer strong in other areas (closing costs, due diligence, earnest money, etc.), and talk about pricing trends and market trends. In the end though, you, the buyer, have to be comfortable with your decision. We never want you to do something you’re not comfortable doing.

Q: We’re already at the top of budget, what can we do?

A: There are other ways to make your offer strong and to have it considered by a seller. If you’re a cash buyer that can be a strong position in itself, and with cash there is some additional flexibility as well (amount of time needed to close, due diligence, appraisal etc.). Again, removing some of these contingencies isn’t always the best answer though.

If you’re a buyer obtaining financing, making sure you have a solid pre approval letter with a current date stating the address and that your credit has been checked, employment verified, and so on. That alone can be a huge boost and give a seller more confidence in accepting an offer contingent on financing. We can also help you to make your inspection period as short as realistically possible and we can work with your lender to talk about quick closing time frames. When we get to this situation though, we are here to help and chat more in depth about these options and whether or not they make sense for your buying position.

Q: Is this happening at a certain price point?

A: Honestly, it’s happening at a variety of price points. There are some price points that are hotter than others and driving more offers than another. We’ve seen multiple offers under $300,000, from $400,000-$600,000 and over $1million. If a home is priced right and there are a lot of people looking in that price range then the odds of multiple offers happening is a good bet.

Q: Can we avoid this situation?

A: Homes that have been on the market for a while and have not gone under contract are less likely to have multiple offer situations, but even then we still see it happen. Being the first buyer to get an appointment isn’t necessarily going to give you a leg up either. Highest and best deadlines can sometimes give several days for buyers to go and view the home and then make an offer before the seller reviews any offer on the table. If new construction is an option for you, then this could be a good route to take that we can help you with that might be less likely to have multiple offer scenarios occur.

***Always consult a real estate professional, attorney or mortgage lender prior to making any buying decision or offer.



Seabrook Island Club FAQ's

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One of the things we get asked about most often when showing homes on Seabrook Island is how exactly the Seabrook Island Club works, what types of amenities the island offers and whether or not you’re required to become a member of the Club when purchasing property on the island. We have answered some of your most asked questions below in hopes that almost all of your questions will be resolved!

Q: Are you required to join the Seabrook Island Club?

A: Yes. Membership to the Seabrook Island Club is required when purchasing any type of property on the island.

Q: Are there different types of memberships available?

A: Yes, the Seabrook Island Club offers many different levels of membership. There are membership opportunities available for purchasers who are purchasing an unimproved lot (vacant land), and a couple of different membership levels for those who are purchasing any improved property (condo, villa, townhome, home, etc.). You can also choose your membership level based on how much you play golf, tennis, whether or not you’ll be renting out your property and other criteria.

Q: Will my guests be able to use my membership when visiting Seabrook?

A: There are different types of fees associated with what type of guests will be using your membership privileges. There are different rates available for personal guests, rental guests and long term tenants. It’s best to discuss these different types of privileges and rates with the membership office before your guests arrive.

Q: Are there food and beverage minimums?

A: Yes, there are food and beverage minimums, but that minimum amount is determined by whether or not you are a full-time resident of the 29455 zip code.

Q: Is there an initiation fee when joining the club?

A: At the time of closing you will be charged a capital fee. The amount of the capital fee is based upon which type of membership you decide to purchase to the Seabrook Island Club. In addition to that capital fee, you will then have monthly membership dues. Each level of membership comes with different types of fees, rates and privileges.

Q: When purchasing on Seabrook Island is there a transfer fee?

A: When you purchase a home on Seabrook Island there is a contribution to capital within P.U.D. upon the initial sale and resale. This contribution is 1/2 of 1% of the sale price, and is most often paid for by the purchaser of the property (unless negotiated otherwise).

Q: Is there a yearly Home Owners Association fee?

A: Yes, there is an annual Property Owners Association fee (or homeowners fee) on Seabrook Island. This fee goes towards common area landscaping, the security gate, roads, property owners association pools and amenities, etc. The annual POA fee is just like any other community in the Charleston area where you’re paying to belong to an HOA.

Q: Is there a regime fee on Seabrook Island?

A: It depends! If you’re looking at a condo/villa, townhome, or even some single family subsections on the island, chances are you will have a regime fee. Some of these are charged quarterly, while others are charged monthly. The regime fee varies depending on which property you are considering, and what the regime fee covers also depends on the property. Some regime fees cover insurances, and only require you to purchase an H06 policy, while others do not. Regime fees can also include things like water, trash pickup, termite bond, exterior maintenance, roofing budget, and so many other things. It’s important to verify what the regime fee covers if you’re looking at properties that have a regime, as well as if there is a separate transfer fee for the regime.

Q: What types of amenities are located on Seabrook Island?

A: One of the reasons so many people fall in love with Seabrook is the vast range of amenities the island offers its residents. The Beach Club offers stunning views of the ocean, an arcade for kids, and also an outdoor restaurant overlooking the beach (seasonal), and 2 pools. The Lakehouse, also known as the property owners pool, is located near the Equestrian Center and offers a fitness center, indoor lap pool, outdoor pool, and areas for kids to play. The Lakehouse also serves as a “clubhouse” type facility with many different indoor rooms for events and a small lending library. There is another small property owners pool on the island, which has parking for beach access. You can gain access to the beach from several different points on the island. Seabrook Island is also home to 2 golf courses and a beautiful clubhouse facility with stunning views, a restaurant and pro shop. The island also has tennis courts and miles of walking and biking trails.

It is important to know that fees, capital fees, and priveleges for the Seabrook Island Club can change at any time. This information is based on the most recent information provided to us by the Seabrook Island Club. We would love to talk with you about Seabrook Island and the Seabrook Island Club, as well as provide you with a full, updated 2019 PDF version of the membership requirements and rates. If you wish to speak with us and obtain further information about Seabrook Island properties for sale and the Seabrook Island Club, please don’t hesitate to contact us.

 

*This information is deemed to be accurate and up-to-date, but cannot be guaranteed by Simply Lowcountry Real Estate LLC. Information is subject to change, and should be verified by you, your real estate agent and a Seabrook Island Club representative.