How to Sift Through Multiple Offers When Selling Your House
Selling your home in a seller’s market is good, but sifting through multiple offers can be more stressful than you might expect. Your agent can help you consider each offer by looking at the price, the contingencies, the buyer’s financing, and all the extras to ensure you accept a good offer when selling your home.
Don’t Automatically Go for the Highest Bidder
If you are sifting through multiple offers, the highest price will – and should – get your attention first. However, the highest offer doesn’t always mean the best offer. A buyer may have thrown in a high offer but won’t have the means to qualify for a mortgage to meet their offer, or they may need to wait until they sell their home, or they may have a contract loaded with contingencies. Yes, you want to get the best price when selling your home, but you also want to get through the process with the least amount of headache and frustration. It may be helpful to lay out a spreadsheet with not only the offered price, but also the contingencies, financing, and other factors.
Look at the Contingencies in the Contract
A contingency is a condition that, if not met, can allow the buyer to back out of the deal. Contingencies can include securing financing and getting approved for a mortgage, having the home pass inspection, having the home appraised for a certain amount, waiting for the sale of a current home, and more. A “clean” offer is one with minimal contingencies, and as a seller, that is an offer you should seriously consider. Fewer contingencies mean a better chance that the sale will actually go through. No one wants to accept an offer quickly and then find that the buyer backs out and the home needs to go back on the market.
Look at the Financing the Buyer Has in Place
If the buyer is offering to pay cash, you won’t need to worry about the buyer qualifying for a mortgage and waiting out the underwriting process. This is the ideal offer for you as the seller. However, most buyers will need a mortgage and that shouldn’t automatically concern you. What you do need to do is see if the buyer is pre-approved for a mortgage. If the buyer has already gone through the bulk of the mortgage process and has gotten pre-approved for a certain amount, the chances are good the financing will go through. You can also look at the amount of money that the buyer is willing to put down on the home. A bigger down payment or a bigger deposit is a sign that your buyer is serious and has their financing in place.
Consider all the Factors in Selling Your Home
Yes, you want to get the right price. But selling your home can be stressful, and it’s always a benefit if the sale goes smoothly. Some of the other factors to look for when sorting through multiple offers are:
- An ability to synchronize closing timetables.
- A buyer willing to cover a lower appraisal (very important if your buyer is offering above the asking price).
- A buyer willing to add in extras, such as offering to pay some of your closing costs.
Getting multiple offers is always exciting, but it comes with the stress of choosing the right offer. Use your real estate agent as a resource to help you weigh all the offers and find the right one that will make selling your home a success. If you’re selling your home and you’re looking for an agent who will work hard for you, contact Amberwood Real Estate today!