Get some direction on how to handle multiple offers in real estate contract negotiations. We also look at guaranteed sales programs and their pros and cons. Finally, February '12 statistics show how the Greater Harrisburg area is faring.

1. Handling Multiple
Offers

2. Caveats & Assumptions
• All competing offer situations are different
• Recommended guidelines
• This meeting will be from the Listing Agent’s perspective
• In the State of Pennsylvania, all agreements for the sale
of real estate MUST be in writing to be enforceable.
Never present an oral agreement to your Seller.

3. Prior to Presentation
• Never discuss terms with Seller on the phone or with
an e-mail
• Never discuss terms of competing agreements with Co-
op agents
• Inform all Co-op agents when the presentation will take
place and how many offers are being presented
• Allow Co-op agents to adjust their offer (in writing)
prior to presentation
• Co-op agents may be allowed to present their own
offer (with the Seller’s permission) as long as they
know the rules

4. Co-op Presentation Rules
• Inform co-op agent where and when the presentation
is to take place
• Inform co-op agent that they will have ____ minutes to
make their presentation
• You will be present during the entire presentation
• Co-op agent will be allowed to do the following:
- Provide background on buyer
- Present the major terms of the agreement
- Answer questions
• Following co-op agent presentation, instruct co-op
agent to leave the location

5. If One of the Agreements is Yours
• Inform all Co-op agents that one of the competing
agreements is yours
• Instruct all Co-op agents to refrain from discussing the
terms of their agreements with you
• Inform all Co-op agents that your Broker/Manager will
be making the presentation and all communication
should be through them

6. The Presentation
• Competing agreements should be presented in the
order in which they were received
• The Seller has multiple options. Make sure they are
aware what they are:
- Accept one agreement and reject all others
- Counter all agreements
- Counter one or some agreements and reject
one or some agreements
- Reject all agreements
• Anytime there is a counter, ask the Seller, “Are you OK
if we never see this offer again?” Remember – counter
offers void all previous offers.

7. Countering Agreements
• NEVER have your Seller sign an agreement until all the
terms are agreed upon
• Counter using one of two methods:
- Change terms in writing and initial changes
- Convey terms to co-op agent in memo form
• Use this language when communicating back to co-op
agent: “My seller will reconsider your agreement with
the following terms: _____________”
• Inform all competing co-op agents how many
agreements are still in play and when you will be re-
presenting offers

8. Acceptance
• Most co-op agents will want to know why their
agreement was not accepted. Never reveal terms of
the acceptable agreement. Use the following
language:
“My seller decided to accept another offer that they
felt had a better price and terms.”

9. Guaranteed Sales
Programs
Sale

10. What They Say - - -
“If your home doesn’t sell, we’ll buy it!”

11. Qualifications
Property standards:
- Excellent or very good condition
- No functional obsolescence
- Lower and upper price ranges excluded
- Certain areas or locations are excluded
- Must be on public sewer (and probably public water)
- No short sales or pre-foreclosure properties

12. Sellers Can Expect . . .
• Application Fee – Another term for an appraisal.
Usually about $500.
• Market Ready Costs – Fix up costs. Could be anywhere
from $0 to thousands of dollars.
• Carrying Costs – Usually about 6 months. Includes
monthly payments on mortgage, utility costs and
property management fees.
• Conservative Sales Price Guarantee – Usually about
5-10% below market prices.

13. Fine Print
• Predetermined Price Reductions – Sellers have no
choice
• Sellers must sell and buy through real estate agency
• Sellers must use mortgage, title or other ancillary
services

14. Agents Can Expect . . .
Commissions at risk if property doesn’t sell.

16. Average SOLD Price
Cumberland & Dauphin Counties
2011 vs. 2012 (Year-to-Date)
$220,000
$200,000
$199,864 $200,683
Sales Price
$180,000
$160,000
$140,000
+ .4% $155,889
$138,757
$120,000
- 11.0%
$100,000
1 2
Cumberland County Dauphin County
Avg Sold Price 2011 Avg Sold Price 2012
2011 2012