When you’re selling your home, receiving multiple offers is an ideal scenario. If you sell your home in a low-inventory market, you will likely receive more than one offer. As you consider multiple offers on your home, the highest offer may not always be the best offer for your situation. As you prepare to market your home, read on to learn what to do if you receive multiple offers.
Do your local homework
Understanding the local market will help you to review the offers most realistically. Studying the local home sales and the current inventory can offer insight into prices and how quickly other homes sell. This knowledge can help you feel confident as you accept the most compelling offer.
Wait until all offers are in and review them at the same time
If you expect multiple offers coming in around the same time, for example, following an open house weekend, wait until they are all submitted before you review them. Your real estate agent may establish a deadline for offers. Reviewing the submissions simultaneously will give you clarity as you assess the different methods of financing the home, contingencies, and proposed closing dates.
How will the buyers purchase the house?
Different buyers have different financing scenarios. When you’re dealing with multiple offers, you may want to eliminate the submissions where the buyer isn’t already pre-approved. Without a pre-approval letter, the buyer still needs approval from a mortgage lender, which isn’t guaranteed, and can result in a more extended closing period. In addition, some offers may be cash offers, which can be more appealing than an offer that requires mortgage financing.
Are any contingencies or concessions included?
Buyers will likely include contingencies in their offer, and it’s up to the seller to decide if these are reasonable. While you may feel comfortable accepting inspection and appraisal contingencies, financing contingencies may feel too risky for you as the seller.
Consider the closing date
The closing date can be an essential part of the offer to help determine your decision. However, if an offer requests a closing date that significantly varies from the date you are willing to accommodate, you may consider other offers.
Review how much the offers are worth
While many factors go into the strength of an offer, the offer price is a significant aspect of the offer. So when you’re reviewing the submissions, ensuring you’re getting the maximum value for your home is a top priority.
How much is the earnest money offer?
Earnest money is a sum buyers put down once the offer is accepted to show they are serious about buying. If the buyer backs out, they lose this sum of money. Since there isn’t an amount required, a more significant sum of earnest money can indicate that the buyer is serious about the offer. While this number can be negotiated, considering an offer with a higher earnest money amount could mean a more serious offer.
