What Should You Do if You Receive Multiple Offers?
Every seller wants multiple offers on their home sale. When you get them, though, how do you determine which offer is best?
If you’re selling your house in a hot market, you’ll likely receive multiple offers on your home. There are three things to consider when looking at multiple offers to help you determine the best one:
1. Should you even disclose to buyers that this is a multiple offer situation? A lot of times, homebuyers get skittish around homes that they know are entering a bidding war. They might want to avoid the home altogether instead of making their highest and best offer. Sometimes I don’t disclose that we have multiple offers, but it all depends on your specific situation. There are a lot of factors to consider.
2. Set a deadline for offers. Once the deadline has been set, you can collect as many offers as possible. After the deadline, you can then go back to everyone and ask them to submit their highest and best offer. Most of the time, someone steps forward out of that group in order to secure the property.
3. Pay attention to the terms of the contract. Yes, the price is important, but there are other considerations to make when it comes to determining which offer is best. A lot of times, the best offers are close in price, so you need another way to distinguish them. If they are pre-approved for financing or a cash buyer, there’s a much better chance of getting that contract to the closing table. Other things to consider include inspection and appraisal contingencies, how much earnest money they are putting down, and whether or not there is a due diligence contingency.
These are the three major things to consider if you’ve received multiple offers on your home. If you have any other questions for me or are looking to buy or sell a home in Charleston, give me a call or send me an email. I look forward to hearing from you.