Before you can move into your next home, it's usually necessary for you to sell your existing home. The length of time it takes to sell your home depends on your regional real estate market. In some situations, if there are more homebuyers than home sellers, you may find yourself with multiple offers on your home. Here are a few tips to follow when facing multiple offers.
1. Look at the Total Picture for Each Buyer
When navigating more than one offer, it seems like an easy option to go with the buyer offering to pay the most money. However, the buyer who's willing to pay the most may not be the best option. Instead, look at the total picture for each buyer, taking into account details like their financing information, proposed earnest money, suggested closing time, and requested concessions.
Many potential buyers need to finance the cost of the home with a mortgage. Pay close attention to the details of each buyer's loan information. If you have a buyer who is dependent on being able to procure a loan using a loan program with strict requirements, this buyer might be riskier than one who is ready to put 20 percent down on the home via a more traditional mortgage.
A buyer who is ready to pay cash for the home is often the least risky option. When financing a home, there's always the possibility that something can go awry during the lending process.
2. Reach Out to Your Realtor
Sometimes, buyers might propose offer terms that sound attractive in order to incentivize you to choose their offer. However, they may propose terms that aren't realistic. If a buyer offers more than your asking price but needs to use a loan to buy the home, your home will need to appraise for a specific amount to close the deal.
A super quick closing date sounds great, but you have to be realistic when deciding if it's possible to have everything done in such a short period. Discuss each offer with your realtor to help you decide if the terms are realistic for your area.
3. Keep Your Own Goals in Mind
Each home seller has their own goals when selling a property. Some sellers want to get the most money possible, even if they have to stay in the home a month or two longer. Others need to get rid of the home as quickly as possible to move into a new home.
You may prefer an offer with minimal requested concessions to make the home selling process as simple as possible. Use your needs to guide your offer selection.