Evaluating multiple offers in real estate is both exciting and terrifying at the same time. Multiple offers are a home seller’s dream. But when they come in, it’s not necessarily all roses.
How To Generate Multiple Offers On A Home In Real Estate via Kyle Hiscock
Receiving multiple offers means you’ve presented your home to the market in its best possible light and that you’ve positioned it correctly concerning price. But multiple offers can be stressful, because it may not be obvious which offer to accept. Here are some tips for evaluating multiple offers.
Identify the best buyer and work with them to make a deal
The best buyer isn’t necessarily the one with the highest-priced offer. If a buyer made a high offer just to “win” the bidding war, they might get cold feet or second guess their decision and walk away after inspections.
The best buyer has seen the home multiple times and has made themselves known to you and your agent. This buyer is likely working with buyer’s agent and has already been pre-approved with a local mortgage professional and has been in the market for some time. They were likely one of the first to see the home and have lost out on other homes recently. This makes them much more willing to negotiate than a new Buyer.
A good listing agent will be quick to identify who is the best buyer. You want a buyer who is committed to the home and will close, barring any unforeseen circumstances. Once you accept an offer or sign a contract, the work begins.
How to Handle a Real Estate Offer via Bill Gassett
Use the terms of a lower-priced offer with your best buyer
If you have a few offers, they may run the gamut from over-asking to lowballing. Don’t be insulted by any offer, because the more offers you receive, the more offers you have to work with for counter-offers.
If your agent can go back to the buyers’ agents and say “We’ve received four offers,” it will make the top two buyers want it even more. If your low-priced offer has a quick closing or offers to remove all contingencies within two weeks, leverage those terms with the higher-priced buyers.
It’s helpful to take all prices and terms and try to get one buyer to offer you the best of each. If the best buyer didn’t come in at the highest price, counter them to match another offer’s price and terms.
Always try to get a backup offer
You don’t want to have to go back on the market. When that happens, you’ve lost momentum and may not realize that same price or terms again. Buyers who see a home go back on the market tend to get spooked or think there is something wrong with it. I even had a buyer at closing who said they were $20,000 short on funds to close, that day! Knowing that my seller had everything on moving trucks, I already had a back-up offer ready, because I didn’t trust them, or their agent during negotiations. The other buyers were waiting in another room, and magically, the first buyer came up with the $20,000, in cash, on the spot from his briefcase. Case in point, my seller and buyer in this transaction.
“Gerry, we wanted you to know how much we appreciated having Wendy Weir as our real estate agent in the matter of selling our home. She has done an exemplary job in that: • She determined the market price of the home in a carefully researched manner. • Upon finding a new house, which required our house be sold in 48 hours in order to be able to make an offer, she gave us advice which got us an offer in 12 hours. • Relying on her experience and insight, she determined that things were not going properly with the buyer. She immediately came up with a strategy to counter the problems. Our house was relisted to secure back-up offers. She generated interest and had two back up offers. She created the complete package for us to secure the house we wanted. She had the first offer and a back-up offer should the first one default. She had us rent the house we wanted so the seller would not sell it to someone else. She tenaciously pressured our buyer’s realtor and banker to make sure our buyer did what he was supposed to do. When we finally closed, she gave a great closing party. Wendy’s concern and caring for her clients is exceptional. She goes above and beyond what an ordinary agent would do so that her clients will get what they want. Determination, energy, and experience are qualities that describe Wendy Weir. She is worth every penny of her commission and more. We give Wendy our highest recommendation. She is an amazing agent.” – Tom and Ruth VanHouten
If you have multiple offers, try to get the second-best buyer to agree to a backup position. If they won’t agree to it in writing, be sure that your agent maintains contact with them or their agent until the first buyer has removed all of their contingencies.
Multiple offers shouldn’t necessarily come as a surprise to a seller. If you study and know your market, you can plan for it. Think in advance what types of terms and conditions are important to you. When you have more than one interested party, you are more likely to create the perfect, most favorable terms and conditions for a successful, hassle-free sale.
Wendy Weir Relocation – Real Estate Agent, Relocation Specialist, Birmingham, MI
Powered by WPeMatico