It’s every seller’s dream scenario: not only selling their home right away, but receiving multiple offers from different buyers, too! In today’s market, this is becoming less of a dream and more of a reality for many sellers across the country. If you find yourself fielding multiple offers for your home, here are the ways you can handle the situation:
Take the highest bid.
Some sellers don’t take much time to consider other offers and just accept the one that is highest. Although this may pay off sometimes, sellers should be cautious. Remember, a lot of deals fall through at the last minute, so if you are working with a buyer who is bidding far more than he or she can afford, then you probably won’t make it to closing. You have to look at other factors, such as proof of funds or financing, to make sure that you have a serious buyer before committing.
Ask for the best and final offers.
Another way to approach multiple offers is to ask each buyer to submit their best and final offer for consideration. This way, you can let buyers know that there are other deals on the table so they are forced to sweeten theirs as much as possible if they are truly interested in getting the home. Sellers will typically given buyers a deadline to submit their best offers, and then review each one of them carefully with their agent to determine which one has the most to offer. This is a great way to deal with multiple offers as long as the buyers are willing to play your game. Some buyers may be turned off by the possibility of overpaying for the home or jumping through a lot of hoops only to be outbid by someone else.
Counter one, reject all the others.
If you receive multiple offers on your home, you could also choose to counter one offer and then reject all of the rest. This allows you to focus on negotiations with one buyer instead of dealing with a number of people contacting you with questions, contingencies and bids. But, just make sure that you pick the right one to focus on before you say goodbye to the rest of the bidders. It’s not just about the financials at this point. You need to carefully review the offer to make sure that the buyer you choose will be able to pay for your home and isn’t asking for things you are not willing to do. For example, a buyer who is submitting a bid with a lot of repair contingencies attached may not be as attractive as another buyer who is submitting a straight cash offer without these contingencies. Talk to your real estate agent before making a decision.
For more advice on real estate matters, talk to the pros. Contact our team of real estate experts at Coast 2 Coast Realty who have years of experience working with both buyers and sellers in the Tampa Bay area.