Sellers rejoice! It seems like prices of homes are rising and after almost a decade, it is not uncommon to have more than two offers for your property… at the same time! Now that is a problem you would happily face if you are a seller, right?
Before you get too excited and start dreaming of the things to spend your money on, there’s one thing you should not forget: you have to choose the best offer. Now, how exactly do you go about that? Are you ready to face the bidding war?
When you need to juggle a couple of offers, it is very to approach this thinking that the only strategy you need to employ is to wait for the biggest offer. That, unfortunately, is not entirely correct. It is true that money is a big factor, but you need not be instantly blinded by an incredible amount.
Cash Offers, Closing Dates, and Contingencies
Like we mentioned, there is more to choosing the right offer than the biggest amount of money. For one, you should also look for a buyer with the most convenient proposed closing date. This is especially important if you need to sell as soon as possible.
You should also check if the bidders are okay with waiving contingencies like inspection, mortgage approval, and attorney review. Waving their contingencies means they have fewer “outs” and it more likely for the deal to sail through.
What if a bidder asks for a contingency to have the deal on hold until the property he sells gets a buyer too? Should you still consider that one? We think not.
How do the bidders feel about “earnest money”? This should not be confused with down payment. This is actually money that their agents hold. This is what will guard you from those kinds of buyers who bail at the last minute.
Finally, let us not forget or pretend to not count cash payment as a big factor. We all know it is. After all, you would not think it is ideal to wait for a bidder who is yet to get a loan approval. If there are no cash offers, then carefully examine your bidder’s financing stability, how strong it is and where it would be coming from.
There is no specific formula that would apply for all sellers. What you can do is sit down and go through each term carefully with your agent until you figure out which bidder has the offer that works best for your particular situation and need.