How To Handle Multiple Offers As A Home Seller
Kevin Cooper • November 16, 2021
There are currently more home buyers than there are homes to buy. If you listed your home for sale in Elk Grove or Sacramento, be prepared with the possibility of having to choose from multiple competing offers.
Make sure to play your cards right!
This guide will help you choose the best offer for your home.
What Does The Best Offer Look Like?
The best offer will look different for every seller.
The best one is the offer that fits your needs, situation, goals, preferred selling terms, price range, and moving schedule.
New How to Decide Between Offers
- Make sure your agent knows your priorities. You and your agent should be on the same page when it comes to knowing your priorities for selling. This will significantly make it easier to sort through offers. For example, if you need to sell because of a life change like marriage or job offer, speed in selling the home is important. You might want to consider the earliest offer or cash offers so that the entire process syncs with your timetable.
- Start with pricing, but don’t stop there.
You’ll naturally be drawn to the highest offer, especially if it goes above your asking price. Remember: the buyer with the highest offer might
not qualify for a mortgage. So, consider the price along with other conditions, too. Review the terms of the contract with your real estate agent. One of the many benefits of working with a real estate professional is that you don’t have to rely on guesswork. They can explain technical terms and set your expectations.
- Consider the mode of payment.
How the buyer will pay for the home is another big factor to consider. When the buyer will pay for your home in cash, you don’t have to worry about them qualifying for a mortgage. Cash payment means the deal is more likely to close. If the buyer needs a mortgage, consider if they are preapproved for a home loan. A preapproved buyer's offer is stronger than one from a buyer who hasn't secured financing.
- Review contingencies carefully.
Contingencies can make or break your deal. Thoroughly check the conditions that the buyers included, especially the conditions you need to do as a seller before getting paid. The most common conditions include property appraisal, home inspections, and buyer financing. These stipulations protect the buyer in case major house defects are discovered.
- Determine if the buyer can close despite low appraisal.
Expect the lender to order an assessment. If the market value from the appraisal is lower than the offer price, the buyer needs to make up for the difference. Go with the buyer who has the ability to close or cover a low appraisal.
- Run over the
“extras”
offered by buyers.
It’s a seller’s market in California.
Find out what Seller’s Market mean for you here.
Because of the current housing market in California, some buyers would include
extras
to make their offer stand out. A buyer may offer to pay for closing costs or include an escalation clause to outbid others by a certain amount. If you’re torn between offers with similar prices and contingencies, these
extras
will make a huge difference.
- Have synchronized closing timetables.
If you need to sell quickly, choose a buyer who has been preapproved for a mortgage and can close in a few weeks. If you need time before moving out, go with the buyer who can accommodate your moving schedule. Some buyers would allow sellers to stay for up to 60 days after closing. This is called a rent-back, although some buyers will not charge a rental fee to make their offer more attractive.
You are in an exciting but critical position to sell your home in Sacramento, Elk Grove, or nearby areas. Work with a real estate agent who can make this turn out even better!
Cooper & Associates Realty is in the business of helping sellers make the best move for almost 2 decades!
Chat with us and let’s work on the Best Move You’ll Ever Make!
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