Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

Is it a Dutch auction or a multiple offer?

Posted by Steve Koerber on February 23, 2010

Customers faced with a competing offer often say “I’m not getting into a Dutch auction”.  But what is a Dutch auction?

A Dutch auction is an auction in which the price of the product being offered is reduced until a buyer is found.  In NZ real estate Dutch auctions are very very rare.  So when you’re making an offer on a property, you’re unlikley to ever get caught up in a Dutch auction.

You may however become invloved in a multiple offer.  Agents and agencies have varying methods of dealing with multiple offers on one property.   

In a nutshell this is how I deal with multiple offers:  Immediately a second written offer is signed all negotiations must cease.  No further contact is made between buyers and seller.  Managers of competing Barfoot & Thompson branches are informed.  Both buyers are given an opportunity to amend their original offer and either withdraw or re-submit their offer for consideration by the seller.  Buyers are required to sign a “multiple offer form” stating that they aware that they are in competition and that the offer they are submitting is their best offer based on the fact that they may not receive another opportunity to improve their offer.  Both (or all) offers are presented to the seller by a Barfoot & Thompson manager at the same time.  The seller decides to accept, reject or counter-sign.  Only one offer can be counter-signed.  Any other offers are simply rejected.  All care is taken to ensure that offers remain confidential.  Buyers can feel confident that their offer is only disclosed to the selling agent, the manager handling the multi-offer presentation and the seller.  Details (price, conditions, etc) about competing offers are never disclosed to other buyers.

If you are in a multi offer situation and I am involved, I guarantee you will be treated with fairness and respect.  To avoid disappointment I strongly advise you to make your very best offer as soon as you are in a multi-offer situation.  Make your offer price an odd number (eg: $1,251, 897) to avoid offering the exact same figure as competitors.  Please raise any concerns you may have immediately.

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