18 Mar How to Choose the Buyer When You Have Multiple Bids On Your Home
The ‘For Sale’ sign is in the yard. The house is ship-shape . . . decluttered, refreshed where needed, the yard looks like a carpet with pops of color. You’re ready for that one buyer to fall in love with your house.
Then you get a call – ‘We have multiple offers on your home.’
Wow. Didn’t see that coming! Now what?! You’re going to have to pick which offer to accept. HELP!
Deep breath. This is when you’re grateful to have a professional realtor to help you make the best decision.
According to research, there are several items to keep in mind as you review each offer and weigh them against each other.
First, for yourself, you’ve most likely indicated to your agent what the driver is for your decision to sell. It may be a company transfer, downsizing, upsizing, financial concerns, or any number of other personal reasons.
As you review the contract offers, take note of the following:
What are the contingencies for finalizing the sale? Does an offer hinge on the buyer selling their current home, are there stipulations on the home inspection, appraisal, or financing? Are there too many ‘outs’ that give rise to wondering how serious the offer is?
Take into consideration what type of loan the buyer is qualified for. How much are they putting down? Are they pre-approved or pre-qualified? (There is a difference!) Having a good experienced realtor advising you is a must!
Beware of using the first offer to test the market. You don’t want to miss a valid sale. If the offer is lower than expected, your realtor will guide you through the counter-offer process (and hold your hand as necessary). This is familiar territory for your agent.
Avoid an emotional response to an offer. Remember, ‘it’s business’ even if it’s your childhood home or the home where you raised your family.
Recognize a strong offer when it’s presented — your realtor will be sure to point it out to you. Perhaps the buyer has done their homework and has pre-approval, is flexible on moving dates as well as what else they have added to the contract (appliances, repairs, etc.).
For cash offers, before you get too excited, confirm that the funds are indeed available. Your realtor will confirm that on your behalf.
Consider the size of the deposit. The more money down generally equates to a high level of interest.
And now, you’ve made your selection, the contract terms are agreed upon, and you’re ready for your next phase of homeownership. Good Job!