Ask Phyllis: a blog series of frequently asked real estate questions.
When Silence Wins: Buyer Strategy in Multiple-Offer Situations
Dear Phyllis,
My son recently purchased a Pasadena condominium after losing out on two previous offers. There were a total of four offers, and ultimately his offer was accepted.
With the multiple counteroffers, the listing agent provided inspection reports from the prior sale of four years ago. We had questions about the HOA and the age of the kitchen appliances, but his agent advised him not to ask, suggesting it could weaken his position as a buyer. We followed that advice, did not raise the questions, and my son’s offer was accepted.
In your view, should buyers avoid asking questions during multiple-offer situations to stay competitive, or is it still appropriate to request key information before finalizing an offer? Sheila
Dear Sheila,
I tend to agree with your son’s Realtor.
In a multiple counteroffer situation, buyers should present their strongest and most straightforward offer. While asking additional questions is reasonable, listing agents may view those questions as signs of hesitation or uncertainty. Fair or not, that perception can weaken a buyer’s position when sellers compare several similar offers.
That does not mean buyers should ignore important questions. Instead, they should address them at the appropriate stage of the transaction.
In a competitive multiple-offer environment, timing and perception often matter as much as price. Buyers typically review HOA concerns after opening escrow, when they receive the HOA disclosure package. Your son would have had the opportunity to review the CC&Rs, financial statements, reserve studies, meeting minutes, and other governing documents. If he found anything unacceptable, he could have exercised his HOA review contingency and canceled the transaction.
Likewise, buyers should evaluate the age and condition of appliances and systems during the inspection period. A professional inspection provides a clear picture of the property’s condition and allows buyers to request repairs, negotiate credits, or cancel if necessary.
Because your son’s offer was accepted, his agent’s strategy appears to have worked in his favor.
Sincerely,
Phyllis
