Multiple Offer Resource Center

Clauses and Training Video for Winning in Multiple Offers

Helpful Clauses - Please note: many of these clauses are in Dotloop as addendums specific to your market or Board. 

Be sure to check out the Multiple Offer Checklist Article!

Escalation
Sellers Choice Closing Date
Appraisal Guarantee
Appraisal Gap/Financing
Due Diligence
Contemporaneous Offers
Back-up Addendum

Interactive Multiple Offer Comparision Worksheet 

Click to Download (ADD TO GOOGLE DRIVE  |  EXCEL)Screen Shot 2021-03-03 at 11.28.05 AM

 

Escalation Clause

Contract Price to be [insert number, e.g. $500.00] higher than the highest bona fide offer, net of concessions, received by Seller, not to exceed [insert cap number, e.g. $5,000.00].

The parties intend this agreement to be a binding contract, and not an offer to enter into a contract at a later date. The price determination will take place as set forth herein, but the fact that the price is not
determined as of the time this contract is fully executed by both parties shall not defeat the existence of a contract.

Listing Firm to provide Selling Firm with a copy of the next highest bonafide purchase agreement offer.

 

Seller's Choice Closing Date

Seller(s) shall choose the closing date that is convenient for the seller(s) to be any weekday date between 00/00/00 and 00/00/00, not including any state, federal or bank holidays. Seller(s) shall name the desired closing date in writing no later than (SPECIFY deadline for the seller to name date). If the seller(s) does not name the desired date in writing by the deadline specified, the buyer(s) shall name the buyer’s preferred date within two days of the deadline specified.

 

Appraisal Guarantee Clause

Appraisal Guarantee: Purchaser agrees to pay $XXX above the appraised value not to exceed the Purchase Price of $XXX.

If the Appraisal Guarantee is not sufficient to satisfy the appraisal deficiency all parties agree to negotiate in good faith to reach a satisfactory resolution.

If a satisfactory resolution cannot be achieved Seller may declare this agreement null and void and all Earnest Money shall be returned to Purchaser.

 

Appraisal/ Gap Financing

In the event, the appraised value comes in below Purchase Price, then Buyer agrees to pay up to $__________ over appraised value not to exceed the purchase price. Any such cash differential shall be applied to Buyers`required Cash at Closing.

 

Due Diligence

Property is being sold subject to a Due Diligence Period of ______  days from the Binding Agreement Date.


Options Payment for Due Diligence Period: 

In consideration of the Seller(s) granting Buyer the option to terminate this Agreement, the buyer(s): Shall pay the seller(s) $_________ in non-refundable option money, the receipt and sufficiency of which is hereby acknowledged; plus

Shall pay The Seller(s) additional option money of $_________ by
___ check or
___ wire transfer of immediately available funds either

___ as of the Offer Date; OR
___ within _____ days from the Binding Agreement Date

Any additional option money paid by the Buyer(s) to the Seller(s)

___ be applied towards the purchase price at closing,  (subject to lender approval)
___ shall not be applied toward the purchase price at closing and shall not be refundable to the buyer(s) unless the closing fails to occur due to the default of the seller(s).

 

Contemporaneous Offers

What to do when you have two buyers who want to write on the same property?

When you have two buyers that want to write an offer on the same property, it is termed a "Contemporaneous Offer" situation and is very similar to a dual agency situation.

Although we do not prohibit dual agency at Key Realty, we STRONGLY discourage it. Our recommendation is that you find another agent to represent one of the buyers and write their offer. 

This is a high-risk situation where one or both clients may feel unfairly treated, and you have the possibility of losing both clients. 

If you do proceed and write the offers for both buyers, here are the correct procedures to follow:

You must disclose to ALL clients prior to writing the offer.

The form is located in Dotloop Under Forms:  "Notice of Contemporanneus Offers"

In most cases, you will have already written one of the offers when the second buyer decides to write their offer, so you will need to contact both buyers before you write the second offer.  The disclosure must be in writing. If due to time constraints you must make verbal disclosure, follow up with written/email ASAP.

There is no breach of duty of confidentiality when you make your disclosure
You should only disclose the existence of the other offer. Do not disclose buyers' identity or terms of the offer.  When assisting your clients, you should begin acting as a dual agent and limit your assistance to your clients in accordance with dual agency principals (no assistance with pricing, etc…).

Downloads

Multiple Offer Checklist (.pdf Download)
Negotiating in Today's Market (.pdf Download)
Seller Net Sheet - Interactive (EXCEL Download  |  Google Sheets Access (instruction on how to add to your google drive)
Multiple Offer Addendum (.pdf Download) (Also available in Dotloop Templates)
Negotiating Checklist (.pdf Download)

 

 

Webinar:  Winning in Multiple Offer Situations (Hint:  it's not always price)