What is a multiple offer situation?

A multiple offer situation occurs when two or more buyers submit offers on the same property. In this instance, the real estate agent is required to notify all parties of the multiple offer situation and provide each buyer with the opportunity to present their best and final offer. 

Legally, the real estate agent cannot disclose the terms or price of another party’s offer. So how do you know what offer to put forward? 

There is no simple answer to determine which offer will secure the property; the other offer (s) may be lower, higher, or exactly reflect the asking price of the property. It is also important to note that the vendor may not simply choose the highest offer; the decision may come down to the most desirable contract terms, paired with a desirable price. 

As such, the best advice when entering a multiple offer situation is to present the best offer where you feel comfortable either to sign a contract for the property or walk away from it if the vendor proceeds with another offer. 

If your offer is accepted, can another buyer place an offer on the property?

In QLD, you have not secured the property until there is a fully signed and dated contract. If another buyer places an offer on the property and the Contract of Sale has not yet been signed and dated, the real estate agent is obligated to present the other offer to the vendor for consideration.  

To secure the property once your offer is accepted, you should ensure you have all of your contract details ready to go for a seamless contract process. This should include the details of your conveyancer who will be representing you for the sale.

Tips for preparing to sign a contract: 

• Speak to your bank or broker to see what timeframe they require to approve your finance
• Research and appoint a solicitor/conveyancer to be ready to review a draft Contract of Sale once your offer is accepted
• Consider who you would like to appoint for a Building and Pest inspection – Building and Pest inspectors are often booked 2-3 weeks in advance, so it is best to book this ASAP
• Have your deposit ready to be transferred (this is typically required within 1-3 days of the signed contract date) – if your bank account has a transfer limit, you may need to organise to increase this for your deposit payment