When selling your home, you may be blessed to receive multiple offers on your property. While this is exciting, it can also be stressful. You are now faced with the difficult task of choosing which offer is best and makes the most sense for your particular circumstance. As you are faced with this challenging decision, here are a few tips to help.
Don’t Focus Solely on the Dollar Signs
While the price being offered is important, it shouldn’t be the only number you look at as you choose between multiple offers. You should also pay close attention to the contingencies listed in the offer. These are the details or events that must occur or the buyer can back out of the sale. There are many types of contingencies you may see in your offer but a few common ones include:
- The home inspection cannot reveal any significant issues that the buyer was not aware of.
- All home repairs from the inspection must be worked out between the buyer and the seller.
- The buyer’s current home must be sold prior to the closing date.
- There are no issues with the home’s title.
- All financing must be obtained by the lender.
If you receive an offer with few contingencies, this is ideal. This means that there are fewer chances the home sale will fall through and the buyer backs out.
You may receive an all-cash offer on your home. If so, move this offer to the top of the list. One of the most common reasons that home sales are delayed or fall through is because the buyer has a difficult time obtaining financing. With an all-cash offer, this is no longer a problem. However, make sure the cash is verified before accepting this offer to prevent major hiccups in the home-selling process.
If you do not receive an all-cash offer, look at the pre-approval letter given to the buyer from a lender. This will verify that the buyer can qualify for a house loan and reduces the risk of financing fall through.
Consider the Deposit
When buyers provide an offer, they also include a deposit. This is a sum of money that shows the seller that they are serious about the purchase of the home. If a buyer provides very little, it shows that they have nothing to lose and they can easily pull out of the sale. However, a buyer who provides a much larger deposit is more likely to work out the issues that may arise with the transaction as they have more money on the line. While the deposit shouldn’t be a major factor in choosing between multiple offers, it can be the factor that separates multiple offers from one another.
Most often, the buyer will determine the closing date and state it in the offer. This will give the buyer time to obtain the proper financing, sell their current home, etc. When receiving multiple offers, you want to pay close attention to this closing date and consider offers that best match the timeline you envision for the transaction.
For example, if you need to sell your home quickly and relocate to a new city as soon as possible, a closing date scheduled in 30 days may be much more appealing than one that is four months away. Sometimes convenience can make all the difference in an offer.
As you choose between multiple offers, include your real estate agent in the decision. While he or she cannot decide for you, they can make sure you look at all factors that matter and help you keep your emotions out of the decision-making process.
How to Choose Between Two Offers
Contact one of our professional REALTORS® today to learn more techniques for properly handling a multiple offer situation.