Real Estate Tip of the Week: How to Handle Multiple Offers
When your seller has multiple offers on the table, it’s time to celebrate! You’ve both worked hard to get to this stage of the process, and it’s on its way of winding down.
While you should celebrate, you still shouldn’t jump on the highest offer of the bunch. As an agent, it’s your job to guide your seller through the multiple offers and help them select the best bang for their buck.
So, how do you wade between the options?
The fewer contingencies, the better it is for the seller. Sometimes contingencies might include getting approved for a mortgage, having the home pass on an inspection, and making sure the appraisal matches the price.
Contingences allow buyers to pull out of the deal – so, contingencies that don’t alarm the buyer, or an offer with zero or the fewest number of contingencies, might be the best pick.
Cash vs. Loan
Cash is king – and if a buyer plans to pay in cash, that means your seller won’t have to wait for a lender to approve the home loan.
However, most buyers will need a mortgage. If this is the case, look to see if the buyer has been preapproved for the home loan.
Consider closing periods – a buyer who wants to close within weeks might be better than one who needs or wants months to close.
However, this all depends on your buyer’s wants and needs. Do they want to move right away, or do they need more time to get things together?
Sometimes an extra incentive might be paired with an offer. Buyers may offer to pay for closings costs, or to offer an escalation clause (offering to outbid another bidder by a certain amount). These buyers are trying to stand out against your seller’s other offers, so it’s worth weighing these extra bonuses out.
Guide and Care
Remember that this sale, while you want to close, is about your clients. Remember their needs and their desires for the outcome of the sale – you’re a team!