Here’s what to look for when sorting through multiple offers.
We’re still in a very active seller’s market. Most sellers are receiving multiple offers for their homes, which is a great problem to have if you’re a seller, but how do you deal with multiple offers? What’s the best way to make sure that the offer you accept is the best one for your needs?
The first thing to do is have your agent contact all the other agents who have submitted offers and make sure they’ve submitted their best. You can have your agent set a deadline for anyone who wants a chance to modify their offer and improve their chances of getting your property.
Of course, price is always going to be a significant factor in your decision about which offer to accept, but it may not always be the most important factor. Other terms could be just as important as the price. For example, you might need more time to look for a home to buy yourself, or you might be operating on a time frame where you have to synchronize your closing date and move.
When weighing the merits of multiple offers, you should also pay attention to the amount of down payment or earnest money deposit the buyer submits. Their total down payment is one thing, but the earnest money deposit is extremely important. A larger earnest money deposit demonstrates how serious the buyer is and shows that they’re unlikely to walk away from the transaction. Deposits ranging from $5,000 to $20,000+ are not uncommon in this market.
Also, keep an eye on each offer’s financing. Nowadays, many offers are cash, but there are many more offers that involve financing. An offer that has been fully pre-approved by a lender can be almost as good as cash, so don’t write them off because they’re not cash offers. Cash isn’t always king.
We don’t know how long these multiple-offer situations will remain so prevalent in the market. However, we do know that managing them properly can put thousands of dollars more in a seller’s pocket.
If you have questions about today’s topic or anything else to do with real estate, feel free to reach out to me. I’d love to help you.