3 Tips for Evaluating Multiple Offers

Selling your home is a process, sometimes an unpleasant one, but sometimes it can be fun. Usually it’s only fun when you get a slew of interested buyers waiting to make you an offer. Figuring out which offer to accept is of utmost importance, and which one will go through is crucial.

The sellers dream is receiving as many offers as they can handle as quickly as possible. Once multiple offers start coming in, brace yourself, there will be a ton to look over. This is when you know you’ve staged your home to the best of its ability and priced it correctly. Having multiple offers will be stressful, because which offer should you accept? Here are some tips to decide which offer.

 

Identify the best buyer and work with them to make a deal

When I say “best buyer” I mean the person(s) that have been to the house multiple times, and has made themselves known to you and your agent. Do not confuse this with the person who placed the highest bid. If the best buyer was the highest bidder, there’s a chance you could be caught in a bidding war, or they get cold feet and walk away after an inspection.

This best buyer is the one who is working with a local agent, and has been pre-approved with a mortgage, and has been in the market for some time. A quality listing agent will be quick to point out who is the best buyer. The buyer who is committed to a home and wants to close is the buyer for you. The second you accept an offer or sign a contract, the work begins.

 

Use the terms of a lower-priced offer with your best buyer

If you have a couple offers, they might run the gamut for over-asking to lowballing you. Try not to take offense to any offer, because every offer you get, the more times you will have to figure out a counteroffer.

If your agent can contact the buyer’s agent and say they’ve received five offers, it will make the top two buyers want it even more! If you price is low, and you get a quick offer and closing or offers to remove all contingencies within two weeks, use that as leverage terms with the higher- priced buyers. It’s helpful to grab the best piece of each offer and see if you can get the best buyer to create an offer with each piece in it. If the best buyer doesn’t offer the highest price, try countering them to match another officer’s price and terms.

 

Always try to get a backup offer

Avoid going back at the market at all costs. When this happens, you’ve lost your momentum and could easily overlook the same price or terms. If a buyer sees a home go back on the market, they’ll get spooked and think there’s a major problem with it.

IF you are fortunate to get multiple offers, try to convince the second-best buyer to a backup plan. If you can’t get them to agree to it in writing, keep in contact with them until the first buyer has removed all contingencies. If possible to slip buyer two late in the game, you definitely should.

Don’t be surprised by multiple offers. It happens, and you can prepare yourself when you study and know your market. Know in advance what contingencies you want ahead of time. When one party or more is interested, you are increasing your chances to make the perfect, terms and conditions for a successful sale.

 

Good luck!

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