In today’s sellers market we are experiencing many buyers competing for the same home and presenting multiple bids to the seller. This can be wonderful for a seller to get the best deal on their home but it also can be a very stressful time. There is no “right” strategy for handling multiple offers but your Shorewest, REALTOR® can help weigh pros and cons and ultimately help you make the best decision.
Strategies to accepting the best offer:
- *Accepting the highest bid. This may seem like a straightforward decision to make but there are a lot of factors that go into choosing the “best” offer. Depending on the type of contingencies that are presented with each bid, the highest offer may not actually be your best choice.
- *Ask all potential buyers for their best offer. Going back to your bidders for a second offer will give you two scenarios. One, it will weed out the less serious buyers and potentially give you a higher selling price. Two, it may turn off too many of your possible buyers, leaving you back at square one.
- *Counter one offer and sideline or reject the others. This strategy lets you concentrate on the most serious bidder. Maybe you want to sell your home to a family and not a flipper but you can’t bring yourself to accept their lowball offer. Countering gives them an opportunity to raise the price, giving you a better deal.
An all-cash offer is tempting because there is usually no appraisal needed which removes an unpredictable variable in the situation. However the bid may come with unacceptable contingencies which will make your buyer with a loan look a lot more appealing. Here are some things to keep in mind:
- *Contingencies. Buyers will most likely include some contingencies in their contract. Depending on how many, or what they are asking, the contingencies could cause the deal to fall through. For example if the contingency is hinging on their mortgage approval, this may be one to skip.
- *Pre-approval. Buyers that are already pre-approved for a mortgage are almost as good as cash! However in some circumstances pre-approvals do fall through.
- *Appraisal requirements. In a hot market, appraisal contingencies can be a hassle. Depending on who they got their mortgage through, they may not be willing to lend the difference if the appraisal comes in below the purchase price. Unless the buyer is willing to make up the difference, the sale might not finalize.
- *Closing time. When does the buyer want to close? One month? Three months? Longer? When you are checking out a few different offers, their timeline should try to line up with yours.
When you receive multiple offers, it feels good. Your home has appealed to a wider range of people, and they all want to move in. However exciting the process is, you still have to maintain a clear goal of what you want from your sale and your buyer. Accepting an offer requires careful consideration on your part and collaborating with your Shorewest, REALTOR® to make the best and most educated decision. #ShorewestRealtors #SellersMarket #AcceptingAnOffer