When the real estate market is good, oftentimes a home seller will get multiple offers on their home. Well, that sounds like a great problem to have! If you find yourself in that situation, it's a good idea to talk to your professional Realtor about how to handle this. Sometimes it can be a bit deceiving... in other words, the best offer, is not always the highest one.
So which one should you choose? Here are some of the areas that your real estate broker will ask you to pay close attention to as you’re weighing your options.
1. Add it Up - Do the Math
Doing the math actually goes way beyond simply calculating the dollar amount difference between the various offers that you receive. Before you do pull out the calculator, be sure to consider all the math. You need to remember to subtract things like closing costs, taxes, fees and potential repairs to determine the net proceeds of each offer.
2. The Buyer's Financing
We'd all love to receive a cash offer that closes in 2 weeks. If this happens, find out if the buyer can provide proof from the bank that there are funds to back the offer. However that is usually not the case. Most often, the buyer will need to obtain a mortgage loan for the purchase of a home. Your Realtor and attorney can help verify all of the financing from the buyer's lender, and help you understand the terms of the buyer’s financing.
3. The Buyer's Motivation
Find out why the buyers want to move into your home / area. Do they have family nearby? Are the starting a new job close to the area? Buyers with additional motivation to purchase your home are less likely to press for concessions and they are more likely to work harder to close the deal. A buyer may even include a personal letter with their offer to explain why they want to purchase home. These letters can be really helpful in multiple-offer situations.
4. The Buyer's Timeline
Be sure to notice the closing date of each offer. Obviously, you will want a closing date that best meets your needs. When you choose an offer to work with, you can counter a closing date if the best offer doesn’t meet your timeline.
Please let me know if you have any more questions about multiple offers. If you or someone you know is thinking about making a move, contact me!