Considering Multiple Offers (or even just one)!
Receiving multiple offers (or even just one) on your home is a problem that every home seller wants to have. Sure, it’s certainly something to celebrate. But before you kick back and pop open the champagne, you have a decision to make. Going for the most money may seem like the obvious choice, but it’s not necessarily that easy. While it’s natural to be attracted to the offer with the highest price, it’s important to realize that the highest offer isn’t always the best offer. You might choose to accept a lower offer from a buyer who is better qualified or an offer with more appealing conditions.There are three important factors to consider when dealing with multiple offers or again just one.
Of course the amount of the offer is important when deciding which buyer to choose, but you should also look at other aspects involved in the offer price, such as which potential buyer will be putting more money into the down payment. If you had two offers with the exact same price, the cash down payment amount might just be your deciding factor. BUT keep in mind just because someone doesn’t have as much to put down does not necessarily mean they are not as strong a buyer. So considering a few more factors will help you make your best choice.
Buyers’ Financial Status
When doing business with someone it is necessary to know about financial status, and even though selling your home can be a personal, emotional experience, it is also the ultimate business transaction. You have the right to find out if the potential buyers are in good financial standing. Don’t be afraid to put right in your ad that you are only interested in pre-qualified or pre-approved buyers with documentation. In today’s marketplace, particularly if your home is in a high desire area, most serious buyers know this is a valuable tool when negotiating against other competing buyers. It’s also good to decide before you ever put your home out into the marketplace, what types of financing you’ll accept. Of course, accepting all types (Conventional, FHA and VA). The condition of your home may play a factor in that decision since FHA and VA inspections may be more challenging than one with conventional financing. So it’s a good idea to find out if they will be seeking a loan, and, if so, what kind of loan.
The final factor to consider when deciding which offer to accept is whether there are any contingencies involved. Does the buyer need to sell a home in order to close? Maybe there are other issues, such as inspections, that would hold up the sale for an extended period of time. Make sure you have all the information so you can weigh your options.
It may sound simple, but deciding which offer best suits your needs can be complicated. It’s never a bad idea to sit down and actually write out all of the elements involved in the sale and decide what is most important to you. Then create a list using those elements to compare the potential buyers. That way you can look at all of the significant factors involved, including the total amount offered for the property, the amount of the down payment, the closing date, any contingencies involved, the buyers’ financial standing and how much extra money a particular deal may cost you after inspections. (If your home needs a lot of repairs, you might want to sell it As Is with those repair estimates reflected in your asking price.) Creating a comparison list will help give you a straightforward comparison of the potential buyers and will show you their pros and cons.
BEWARE: Don’t get overconfident or underconfident and blow the deal or regret what you’ve accepted after the fact. Take your time (don’t allow buyers or their agents to rush you) and consider each offer seriously. If you don’t feel emotionally able to make the decision on your own, have a trusted friend or your attorney walk through each offer with you. Listen to their opinion and why they are offering it. Then you decide what is best for you. Now, proceed with confidence into the next part of your life journey!