Getting an offer on the property you are selling is exciting, but getting multiple offers can be overwhelming. The objective is making the most of the opportunities presented without getting into legal, ethical, or strategic complications.
In Minnesota, even seemingly simple residential transactions involve unique disclosure rules and timing requirements. An experienced real estate attorney ensures compliance while protecting your negotiating position. The right attorney can help with well-informed legal advice and a roadmap for strategic next steps.
Seller’s Strategy: Make the Most of Your Opportunity
Multiple offers don’t automatically make selling property easier. Having several potential buyers in the mix is good, but complicated. Each is likely to request unique terms for their purchase, such as contingencies, a quick closing date, or a cash purchase. It’s up to the seller and their team of professionals to crunch the numbers and make a decision.
When working with a real estate agent, sellers must also understand the laws and regulations that apply to Minnesota transactions. Minnesota has specific laws for listing realtors, to ensure transparency in multiple offer situations. These requirements include:
- The listing realtor must present all written offers to the seller promptly, usually within 24 hours.
- Disclosing the terms of a pending offer to other potential buyers is forbidden. Telling potential buyers that there are multiple offers pending is subject to the seller’s approval.
- Listing agents must abide by the terms of their agreement with the seller, including the effective date of their contract, details of commissions, and seller-dictated terms.
- If the listing agent is also representing a potential buyer (known as dual agency), that information must be disclosed for transparency. A seller in this situation will want to consult with an unbiased third party to preserve their ability to negotiate terms.
- Real estate agents must disclose the source and amount of any commission they will receive.
Making the most of multiple offers requires the seller and their listing agent or attorney to act as a team. The seller determines whether buyers are told when there are competing offers, but there’s more, such as:
- Sellers can set an offer deadline, or “review day” and instruct their listing agent to encourage those interested to make their “highest and best” bid on the property in writing by that time, keeping in mind that the buyer’s terms, not the offer amount, are usually what seals the deal.
- The listing agent, acting on the seller’s instruction, should tell potential buyers how offers will be handled, whether they will be countered or accepted, and when. Buyers are often juggling potential offers on more than one property, so responding to offers in a timely manner is important.
- Issuing counteroffers to more than one party at the same time creates legal risk—if two buyers accept, the seller could be unintentionally bound to multiple contracts. A real estate attorney can help draft language to prevent this outcome.
Sellers must remember to consider the contents of an offer, not just the dollar figure attached. A buyer who is pre-approved and willing to close within a month is great, but if they also want the seller to make $3,000 in improvements before closing, a lower offer without that contingency would be better. Counter-offers from the seller can include non-monetary concessions such as leaving appliances and other features.
How Professional Counsel Can Improve Your Sale
A seller should rely on a solid partnership with trusted experts to secure the best terms of a real estate transaction. Your real estate attorney from Waypoint Law plays a key role in reviewing your listing agreement, advising on legal risks, and helping you respond strategically to offers. Contact Waypoint for a free consultation.