This practice is often done with different types of major purchases: cars, businesses, and yes (we know) houses. Is this a good idea, especially when it comes to a home for sale by owner? Let’s take a look at this concept.

There are times when an FSBO will receive multiple offers on your home. In that case, they have a few ways available to deal with this. One way is to inform each potential buyer that other offers are being made. They can even “play” at telling other prospects when a counter offer is made. One important thing you will do is increase the sale price of your home. The logic is that whoever wants it badly enough will pay the highest price for you. It is almost like being in an auction. In this type of scenario, informing potential buyers about other offers is a good thing.

However, before using this type of strategy, you need to understand the negative effects this could have on your sale. If one or more of your prospective buyers feel they have already proposed a fair price for your home; continuing to play this game could only aggravate them. You may well end up with everyone upset with the process and NOBODY buying your home. Then YOU will be the loser, as potential buyers will likely go elsewhere.

Something else about an FSBO that entertains multiple offers for your home and tells other buyers about them is this. Both the seller and the buyer run the risk of missing out on a great opportunity. This is an especially good point for the other potential buyers in a multiple bid situation. Be sure to tell them about all the great features in your home, garden, and neighborhood. Do not omit any important details. Let each prospect know what they will miss out on if they leave the process. Remember, chances are they already see your home as a “can’t-refuse deal.” Then they could end up as disappointed as you if they miss out on buying your home.

One thing you can do to get the most out of multiple offers for your home is to be prepared first. BEFORE you start as an FSBO, do some research on this scenario. Go to relevant websites, talk to experts, find out what is the best way to approach this concept; in case it arises. Practice your negotiation techniques of this type beforehand, then you are ready to deal with it. Another thing you can do is meet each potential buyer when you start bidding. Find out about the limitations they may have financially or even mentally. Perhaps their personality type makes them averse to these types of bargaining agreements. You’ll want to know that before telling you about other offers. The best advice you can get on this topic is: be prepared!