Congratulations! The work and effort of preparing and listing your home has paid off, and now you have offers. Receiving offers is exciting, but can also be overwhelming- especially when you have multiple offers to choose from. How can you make sure that you select the right offer? With varying sales prices and terms, comparing offers might be harder than you expected. Still – it’s a great problem to have.
If you find yourself in a multiple offer situation, the first step is to meet with your agent to discuss each offer in detail. Your agent will be able to break down the details of what each offer includes. It is crucial to totally understand what each offer actually includes- from hidden costs to time constraints.
The following four aspects of an offer should be high priority considerations:
- Sales price might be the easiest detail to compare at first glance. The value of an offer’s monetary amount is relatively self-explanatory. An offer for $750k is worth $750k….right? Well, often times, an offer may try to include buyer’s credits or closing costs, which could come out of your pocket! That’s why it’s important to work with an agent who can give you a better understanding of what that dollar amount actually means- how much of it will be going to you once the papers are signed and fees are paid.
- Terms often determine the timeline of the sale. Whether you’re talking proposed closing dates or when the buyers want occupancy, it’s important to clarify all the details of an offer. If necessary, your agent will reach out to the buyer’s agent and double check any questions you may have. Some buyers may be ready to go today, while others may need additional time before they’re ready to sign. Depending on your own timeline needs, it may be worth it to work with a buyer with the same sense of urgency as you. Being on the same page as your buyer can significantly reduce stress during the selling process.
- Financing is crucial! Does your buyer have pre-approval from a reputable lender? A motivated buyer will often have financing ready to go before even making an offer- this streamlines the process without having to wait for lender approval. Your time is valuable, so a squared away buyer may be valuable in its own right. The same goes for the type of financing: a buyer who offers a slightly lower price but is going to put 50% down might be a better offer than someone using a FHA, 3.5% down loan which could be harder to close. Your agent will be able to help you better understand the numbers and conditions of different types of financing.
- Contingencies cover everything from inspections to appraisal. While most buyers will want to include these, a very motivated buyer may be willing to set them aside in order to give you a more attractive offer. Skipping these tasks can help accelerate the closing process.
Working with your agent, consider all the elements which go into an offer; then you’ll be in the best position to determine the best option for your financial goals, timeframes and needs. Buyers are often working with their own timelines and concerns, so be sure to communicate to your agent your goals so they can accurately represent your best interests in the negotiating process.
In today’s competitive market, buyers are becoming more creative in their offers in order to stand out in a multiple offer situation. More than ever, having a trusted real estate professional advocating for your best interests is more important than ever.