In many of today's strong real estate markets, home sellers can expect to receive multiple offers for their home. Multiple offers are a classic example of economic realities because they appear when the supply of homes for sale is limited and the demand for good-condition homes is strong. Sellers love multiple offers because they push up home prices and create an opportunity to spark a bidding war. Knowing how to respond to multiple offers can help you get the best price and terms for the sale of your home.

How can I make sure my home will attract multiple offers
Hit the market at the right price and, assuming your home is in good condition, multiple offers should come in.

TIP Make sure your listing agreement states that your agent will put your home in the Multiple Listing Service (MLS) within 24 hours. Some agents will hold a home off the MLS for a day or two in hopes of selling it themselves or in-house. Putting the home in the MLS as soon as possible is in the seller's best interest because the home then will be exposed to a much larger number of potential buyers.

Do I have to accept the offer with the highest price
No. If you prefer a lower-priced offer, perhaps with a better qualified buyer or more attractive terms, you can accept that offer instead. Or you can give counteroffers to one or more of the buyers. Caution If you reject a full-priced offer, you may owe your agent a full commission even if you do not sell your home.

My agent says I should receive all my offers by fax, rather than having the buyers' agents present the offers. Is that okay
Some agents recommend the fax-only option.  If there are multiple offers, the fax-only practice is a time-saver for you and the agents.

TIP You might want to receive all the offers by fax, then have the top offers presented. Either way, you, as the seller, make the rules.

One of the buyer's agents is from the same brokerage company as my agent. Should I give extra consideration to this in-house offer
No. All offers should be evaluated equally based on the net price and terms.  Always go with the best offer.  This is based on price, terms of contract, and financing. 

TIP Some brokerages give the seller a commission break for an in-house transaction. This concession is known as a variable commission or listing broker advantage. It should be discussed in advance and disclosed through the MLS.

Can I counter more than one offer
Yes. However, if you accidentally accept more than one offer you could be legally obligated to sell your home to two buyers. It is best to use a standard counteroffer form that says the counteroffer isn't accepted until it is signed by the buyer and subsequently accepted by you.

Can I back out of my escrow with buyer A and accept a new higher offer from buyer B that my agent just received
Trying to back out of an escrow is extremely unwise because an accepted purchase offer is a legal contract and the buyer can take action to enforce it. Legally, once you have signed and agreed to the offer with a buyer, you can not get out of it. Your only hope would be that the buyer does an inspection and makes a bunch of requests. If you refuse to fix everything or adjust the price accordingly, the buyer might just walk away. 

My home has been on the market for four weeks, but I haven't received any offers. Is this situation my agent's fault
If you ignored your agent's advice about pricing your home or making any repairs, it's not really reasonable to blame the agent for the dearth of offers. However, if the home is priced right and in good condition, you'll want to have a frank conversation with your agent and take corrective action.