How to Handle Getting Multiple Offers on Your Home
If you’re thinking about listing your home, you’ve probably heard that we’re in a seller’s market right now. As inventory dwindles and buyer interest intensifies, it’s not uncommon to see properties sell just hours after they’re listed, sometimes even tens of thousands above their original asking price.
This may seem like an ideal scenario, but navigating a multi-offer situation can be difficult for even the most seasoned sellers. And sometimes, selecting the right offer doesn’t always mean going with the highest bidder.
Your Guide to Choosing the Right Offer
As a seller, you’ll quickly find that not all offers are created equal. In addition to price, there are a few other factors you should consider, such as contingencies, financing, closing dates, and plenty of other extras that buyers can attach to an offer.
Feeling a little overwhelmed? This advice can help you streamline, and get the most out of, your home sale.
Keep your agent in the loop
First and foremost, you’ll want to include your agent in every step of the negotiation process. They’ll be the main point of contact between you and a buyer’s agent, but they can also talk you through your options and help you decide which offer best suits your needs. Additionally, your agent can educate you on common contingencies, as well as other terms that are often added to an offer (more on that later!).
Compare contingencies and financing
Aside from price, you should look at the contingencies and financing options included within any offers you receive. Contingencies are conditions that must be met before a sale—common examples are home inspections, appraisals, and loan approval. As a seller, you want to see as few contingencies as possible, as they can make it harder to close the deal.
Additionally, it’s important to consider how a buyer will be paying for your home. Cash offers are usually considered the best, as you won’t have to deal with appraisals or lenders. There’s also no chance of losing the sale if the buyer’s loan application doesn’t get approved. If you’re looking to close fast, it may even be worth accepting a lower offer if it’s in cash.
Consider any extras
In a hot market, some buyers will do anything to stand out against the competition. However, before you fall for any seemingly enticing offers, you’ll want to know which terms will actually benefit you as a seller.
It’s almost always worth giving special consideration to pre-approved buyers, because they’ve taken an extra step to secure their financing ahead of time. Buyers who want to close quickly, pay any closing costs, or even set an escalation clause to outbid other offers may also be more serious candidates.
Remember your home’s value
If you end up receiving quite a few offers on your home, you might even find yourself in a bidding war. This can drive the price up quite substantially, but you should probably think twice before accepting the highest bid.
If a buyer is financing their purchase, your home will likely need to pass an appraisal before the sale. And if the price was inflated in a bidding war, a bank may not approve the buyer for the full amount of their loan, which could jeopardize the deal. Be sure to keep your home’s value in mind as you review offers with your agent. They can help you filter out any outlandish bids while still maximizing your profit.
Gearing Up to Sell Soon?
Selling a home doesn’t have to be a stressful process—at least not when you work with a top-rated local agent! Feel free to give us a call and let us know how we can help with any of your real estate needs. We have the resources and expertise to get your house sold quickly and for top dollar!