Humber/Ontario Real Estate Course 4 Exam Practice

How should a seller handle multiple competing offers?

1. Reject all offers with no risk

2. Counter the two best offers to create a bidding war

3. Reject three offers and counter the fourth

4. Must accept one of the offers

5. Accept the highest offer regardless of terms

6. Negotiate all offers simultaneously

The correct answer is: Reject three offers and counter the fourth

The correct approach for a seller handling multiple competing offers is to counter the two best offers to create a bidding war. This method allows the seller to maximize the potential financial return from the sale, as it encourages buyers to enhance their offers in response to the competition. By identifying and focusing on the most appealing offers, the seller can strategically negotiate terms that best meet their needs while simultaneously elevating the stakes for the buyers involved. Handling offers in this manner also demonstrates a proactive and market-savvy strategy. Instead of merely accepting an offer or rejecting multiple offers without engagement, countering can lead to a situation where buyers feel compelled to justify their offers, potentially driving up the sale price. The other incorrect options might suggest alternative methods that can be less effective or lead to missed opportunities. For instance, rejecting all offers outright, which is proposed in some options, could lead to a loss of interest from buyers who may move on to other properties. Accepting the highest offer without considering the terms may seem tempting but can result in a deal that may not align with the seller's overall goals, such as timeline or contingencies. Finally, the necessity to accept one of the offers lacks the flexibility a seller has in negotiating with multiple buyers, limiting potential benefits.