Multiple Offers? Which one should you choose?
Did you know that just because you received an offer $20,000 over your asking price that it doesn’t necessarily mean that it’s a better offer than the one that was only $10,000 over your asking price? We want you to pocket the most money for your house too, so we understand why you’d be confused. We’ve helped sellers choose offers for very specific reasons and sometimes, the offers they chose didn’t have the highest price. So, let’s break down some key things to think about besides that offer price when you find yourself reviewing multiple offers.
First on the list is the closing date. Does that date match up with your desired timeframe? Or will you be homeless for a few weeks while you wait for your next house to close? How important is that date to you?
Second, what type of financing does the buyer have? Are they offering cash or getting a loan? Did you know the type of loan the buyer has may require you to do fixes or updates to your home in order for the buyer to fund their loan? Certain loan types have stricter appraisal requirements than others. Imagine if you found yourself in a situation where you’re now required to make a $10,000 repair or replacement or the buyer’s lender says, “Nope! We’re not funding this loan.”
Third, are they offering an appraisal gap payment, if the appraised value does not come in at their offered purchase price? In a hot market like this, everyone is offering over asking price. Does that mean that you will actually receive that price? Not if you potentially accept the wrong offer or don’t counter certain terms in the contract.
Forth is the inspection contingency. Most buyers will want an inspection on their new home before moving in. Truthfully, it’s a great way to protect themselves from unforeseen circumstances. However, again, we’re in a market so hot that we’re seeing plenty of buyers shortening or waiving their inspection contingency. Let’s just use the scenario of receiving an offer that is $20,000 over asking and the buyer is requesting an inspection, but you have another offer that is only $10,000 above asking price but they are waiving their inspections (which means they are not having inspections). That’s something to consider, because on the offer that is having inspections, you are open to the possibility of the inspector finding issues that you didn’t know of or that are deal breakers for the buyers. If that happens, You and the buyers would possibly have to re-enter negotiations or worse, they could simply walk away.
Those are quite a few things to think about when you’re reviewing multiple offers. Having an experienced agent and team like A&J Realty Partners in your corner to help you comb through the fine print details of multiple contracts will stop your head from spinning. We will get you the most money for your home with strong confidence that we won’t run into a ton of issues that could cost you time, money and energy later in your transaction.
To find out some other reasons that the highest priced offer may not always be the best choice for you when selling your home contact us. A&J Realty Partners with Key Realty is here to help you have a fun, empowered and informed real estate experience by guiding you every step of the way.