Using Multiple Counter Offers as a Seller in Silicon Valley Real Estate

If you’re selling a home in Silicon Valley, you may already know this is one of the most competitive real estate markets in the country. Homes here don’t just sell — they often sell quickly and with multiple offers. And when that happens, it puts you in a very powerful position. But navigating multiple offers isn’t just about choosing the highest number. It’s about strategy, negotiation, and leveraging every tool available to get the best possible price and terms. That’s where the Seller Multiple Counter Offer (SMCO) form comes into play. It is the standard fill-in-the-blanks form used by REALTOR®s throughout California to negotiate with multiple buyers simultaneously.

I’ve worked with sellers throughout Silicon Valley and I’ve seen firsthand how properly negotiating with multiple buyers at once can help sellers maximize their sale and avoid common pitfalls. In this article, I’ll walk you through what a multiple counter offer is, when to use it, what the SMCO form actually says, and why it’s one of the most important tools in your real estate playbook if you’re aiming for top dollar.

What Is a Multiple Counter Offer?

Let’s start with the basics: A multiple counter offer is a legal way for a seller to respond to more than one offer at the same time — without binding themselves to any one of them until they choose to. It’s different from a standard counter offer, where you’re only negotiating with a single buyer. When you use the C.A.R. SMCO form, you can make counter offers to multiple buyers simultaneously — while still retaining full control of the process.  You, the seller, get to make a 100% non-binding counter offer to more than one buyer – which means that if any or all of the buyers accepts your multiple counter offer, you do not need to actually need to sell your house at the price and terms specified in the offer.

This is particularly valuable in a hot market like Silicon Valley, where homes often receive multiple offers within days — sometimes hours — of going live. If I’m helping you sell your home and we’re in a competitive situation, the SMCO allows us to engage with more than one buyer, feel out how far they’re willing to go, and drive the price up without risking over-committing or accidentally locking into the wrong deal too early.

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When Can You Use the SMCO Form?

You can use a multiple counter offer any time you receive two or more offers on your home. The SMCO is not just for “bidding wars” or situations with wildly over-asking offers — it can also be effective when the offers are close in price but differ in terms, like contingencies, financing, or closing timelines.

That said, timing is everything. I typically advise clients to use multiple counter offers when:

• We have two or more competitive offers and want to feel out whether anyone is willing to improve their terms.
• We’re uncertain about which offer is best and want to keep our options open without being bound to just one.
• We want to create leverage and signal to buyers that there’s competition without disclosing what other offers (or how many) are on the table.

In short: if you have multiple interested parties and want to extract the best deal, the SMCO is worth considering.

What Does the C.A.R. SMCO Form Actually Say?

The California Association of Realtors® Standard Form SMCO (Seller Multiple Counter Offer) is designed to keep you — the seller — in control of the negotiation process.

Here are the key things the form does:

• It allows the seller to counter multiple buyers simultaneously.
• Each counter offer is independent — meaning a buyer accepting the terms doesn’t create a binding contract unless the seller also signs it again to finalize acceptance.
• The seller is not bound until they re-sign and deliver acceptance to the chosen buyer.
• Buyers are told that the offer is being made to multiple parties, which often encourages them to come back with stronger terms.

The form clearly states that the offer becomes binding only upon final acceptance by the seller — this is what differentiates it from the standard counter offer form. This small legal detail gives you tremendous flexibility. You’re able to test the market, invite stronger offers, and ultimately choose the buyer and terms that work best for you — not just the fastest responder.

Why Use a Multiple Counter Offer as a Seller?

1. It creates competition — and competition creates leverage.

Buyers in Silicon Valley are savvy. When they know they’re in a competitive situation, they’re more likely to bring their best and final offer. I’ve seen buyers waive contingencies, increase earnest money deposits, offer flexible rent-backs, and even bump up their price by six figures — all after receiving a multiple counter offer.

2. You don’t get locked in too early.

With a regular counter offer, the moment a buyer signs, the deal is binding. But what if another offer comes in five minutes later that’s significantly better? With an SMCO, you’re protected from this. You can continue evaluating all offers on the table until you sign to finalize your acceptance.

3. You can negotiate on more than just price.

Sometimes the best offer isn’t the one with the highest number. Maybe one buyer has a large down payment but needs 30 days to close, while another is offering slightly less but can close in 14 days and waive the appraisal contingency. The SMCO gives you the space to explore different paths without limiting your choices too soon.

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How the SMCO Fits Into a Seller Pricing Strategy

As a listing agent, my goal is always to get you the highest price and best terms the market will support. That means more than just putting a sign in the yard and hoping for the best. It means setting the right price, marketing the home effectively, and knowing how to handle multiple offers with a plan.

If we price your home properly and market it aggressively, we can often generate multiple offers. At that point, the SMCO becomes a strategic tool. It’s not just a form — it’s a way to signal strength to the buyer pool, protect you legally, and position your home as a premium product that deserves a premium price. Used properly, it can help drive your final sale price higher, reduce the number of contingencies, and create a smoother closing experience — all without you giving up control of the process.

What Happens After You Use a Multiple Counter Offer?

After sending out the SMCO, each buyer has the option to accept your terms, reject them, do nothing (let your counter offer die when it expires) or make a new counter offer. If a buyer accepts the terms and signs the form, the ball is back in your court.

You then decide whether to move forward with that buyer — and only by re-signing the form and delivering notice does a binding contract come into existence. This protects you from the common scenario of feeling “locked in” too early. You can wait to see what all buyers come back with before deciding which offer is the most compelling.

What If No One Accepts the Counter Offer?

That’s a possibility — and one that’s important to consider. If none of the buyers accept your multiple counter, we may need to regroup and either relist the property, go back to the original offers, or even reach out to other interested parties.

In my experience, though, serious buyers don’t walk away lightly — especially in this market. If your home is priced well and shows well, and if buyers believe they’re in competition, they’re far more likely to counter back with better terms than to disappear.

Is It Ever Better to Use Individual Counter Offers?

Yes — sometimes. If one offer clearly stands out, or if you’re only dealing with two buyers and one is significantly stronger than the other, it may make more sense to negotiate directly with that party using a standard counter offer (Form SCO).  However, signing a single counter offer will lock you in to that buyer – if that buyer accepts your single counter offer, that’s it – you’re in contract to sell your home.  That’s why you need to be really sure no other (potentially better) offers are coming when sending the buyer a single counter offer.  A better idea might be to simply talk to the buyer’s agent and get them to resubmit their offer with the terms that you find acceptable – which keeps negotiations going without locking you into anything.

But if the offers are close, or you’re not sure who’s going to bring their best terms, or you want to invite more than one buyer to improve their position, the SMCO is a more strategic play.

What Should Sellers Watch Out For?

The biggest pitfall I see is misunderstanding the form or assuming that once a buyer accepts, the deal is done. That’s not the case with SMCO. As the seller, you still have to sign again to finalize the contract.

Another thing to watch is fair housing compliance. It’s critical to treat all buyers fairly and avoid any suggestion of bias or discrimination. I always advise sellers to focus on the strength of the offers — not the buyers — and work with a qualified agent who understands how to navigate these issues professionally and ethically.

Final Thoughts: Should You Use a Multiple Counter Offer?

If your home is generating strong interest and you’re trying to make sure you’re not leaving money on the table, yes, you should absolutely consider using a multiple counter offer. It’s one of the best tools we have as sellers to keep control of the negotiation process and create upward pressure on both price and terms.

As a Silicon Valley REALTOR®, I’ve used this strategy with sellers throughout the Bay Area — and it works everywhere, all the time. But like any strategy, it needs to be used carefully, with the right timing and understanding of the current market conditions.

If you’re thinking about selling and want to know whether a multiple counter offer strategy could work for your home, let’s connect. I’ll walk you through what to expect, how to prepare, and how to use every available tool — including the SMCO — to help you get the strongest possible result.

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