If you’re selling a house in a hot real estate market, don’t be surprised if you receive multiple home offers for your listing. Though this is an excellent problem to have, it can also add a layer of stress on home sellers who have trouble weighing their options.
At KeyVest Real Estate, we help sellers make informed decisions on their home offers.With valuable market insight and top-performing selling strategies, our experts can help you sell your home fast and for the right price. If you’re juggling several buyer bids on your home, allow us to help you make a final decision. Read below to learn which factors to evaluate when choosing between multiple home offers.
Multiple Home Offers? How to Choose
Price
Stating the obvious, price plays a huge part in evaluating home offers. If you receive multiple bids on your home, the highest one will catch your attention first. But before you jump the gun and take the top bid, you have to ensure your buyer can fund their offer. If the highest bidder fails to qualify for their mortgage, their offer goes out the window.
So, while price should be considered when weeding out offers, you’ll want to look deeper before accepting a bid. When considering the amount offered, thoroughly review the entire contract with your real estate agent or attorney to get a bigger picture.
Contingencies
Often, home offers will come with their fair share of contingencies. Outlined in the buyer’s purchase agreement, these contingencies indicate the conditions that must be met for the sale to go through. For example, most home offers include a home inspection contingency, allowing the buyer to back out of the deal if the property requires severe structural repairs. As a seller, you’ll want to lean toward offers with fewer contingencies, as these offers will entail shorter and simpler closing timelines.
Closing Timelines
When it comes to closing timelines, you’ll want to ensure you and your buyer are on the same page. If you’re selling your home in a time crunch, you might choose an offer that expedites the process. In this case, consider buyers pre-approved for their mortgage who can close on a home quickly. On the other hand, if you need a slow closing process to allot time for finding your next place, you might favor an offer with a longer timeframe. Ultimately, closing timelines must align for a sale to work out. So, if it means taking a little less money for a deal that better accommodates your timeframe, then so be it.
Payment Method
When making an offer on a home, buyers will either pay in cash or with a mortgage loan. Both options have their fair share of benefits and drawbacks depending on your unique selling needs. With a cash offer, you can skip the lengthy loan process and close on your home quicker.
However, you must be careful with cash offers and ensure your buyer has the liquor funds needed to carry out the deal. On the other hand, financed offers with mortgage pre-approval will offer a stronger sense of security but a lengthier closing process.
Buyer’s Financials
Home offers are much more than a price. As a seller, you must also account for the buyer’s financials to ensure their offer is the best choice. You might consider whether the buyer has been pre-approved for their mortgage, the size of their down payment, their current housing situation, and their ability to bridge an appraisal gap. If evaluating these financial factors seem overwhelming, consider consulting your agent to better understand which offers are of the best caliber. At Mark Spain Real Estate, our experienced professionals will help you survey your options through a big-picture lens. We’ll help you dig deeper into each home offer to ensure you make the right decisions for you.
