How multiple offers work in Queensland

“As it is a multiple offer situation, the owner has requested that all parties submit their final and best offer.”

It is a line heard by many in the Queensland real estate game, but how do we know if it is a tactic to get some extra cash for a seller (plus their agent), or is it a legitimate process providing for transparency across all interested, serious bidders?

Real Estate agencies adhering to ethical and professional standards outlined by the Real Estate Institute of Queensland (REIQ), distribute an “Acknowledgement of Multiple Offer” form to all buyers when there is more than one offer on the table at one time. This means making buyers aware that this may be their last opportunity to put forward an offer given that another buyer’s offer may be more attractive to the seller. For sellers, the benefit of having a multiple offer framework in place is that they can learn exactly what prospective buyers consider the property is worth to them. Additionally a sense of competition is created. Buyers, too, can be encouraged to revise their existing offer to the one offer they are comfortable with, thus avoiding the ongoing back and forward negotiation on price, thereby saving time and hopefully better understanding the price range the seller is aiming for.

The problem

However, these conditions can turn the Queensland property market into a misleading and confusing arena. Buyers eager to secure a property can be coerced by agents into rushing a contract for submission to the seller without first obtaining legal advice or seeking the input of a registered property valuer which can be useful if the value of the property is in doubt.

Trustworthy agents ensure that details of any contending bids are not disclosed to competing parties and allow each party to determine the price they are comfortable with offering. Not so trustworthy agents may push this boundary and give one buyer an advantage or they may infer that a higher offer is required. This is problematic and often where misleading advice can come out to play.

Mind games aside, you would imagine that a seller would decide on the highest offer, right? Well it’s not always the case.

The conditions

The Queensland real estate market can be vicious, with varying agendas at stake. According to Investigate Property, there is no knowing what situation any party can be in.

“Maybe you are the only offer. Maybe it is a multiple offer situation but you are the highest bidder already, yet here you are being asked to increase your bid,” they write.

For the same or similar offers, a larger deposit may get a buyer over the line, strengthening their contract put forward and suggesting to a seller that you are more financially stable to secure the property.

Other factors put forward such as financing, pest and site inspections, settlement timeframes and the state of your own property on the market among other conditions can be used to negotiate an offer when putting forward a written offer in a competitive seller’s market, so long as it is drafted with the help of a qualified solicitor.

When it comes to securing a great property at the price you can afford, speak to the real estate agents that will talk to you straight. At Hicks Real Estate, we want the best for our clients, and we pride ourselves on upholding a philosophy of delivering an honest, productive and professional service to both buyers and sellers in the Brisbane property market. Call us today on 07 3355 6845!