Evaluating Multiple Offers to Purchase the Same Property
When you sell a house, receiving multiple offers to purchase it seems like a dream come true! This rush of interested buyers often makes it hard to select the best offer to accept and go with. While multiple purchase offers feel good, they are not necessarily all good.
Multiple offers often leave the seller stressed because it is never obvious which purchase offer is the best one. To help you make a wise decision, here are some critical tips to evaluate multiple offers to purchase.
Identify the most suitable buyer and make a deal
Remember a good buyer for a house is not necessarily the one offering the highest price. Oftentimes, the buyer makes a high offer only to win the bidding. It is usual for such buyers to second guess their decision or get cold feet after the house inspection.
Therefore, the best buyer is actually the one who has seen your house multiple times and has already made him/herself known to you as well as the agent. These buyers usually work with local agents, are already pre-approved in terms of the mortgage. They have been in the market for quite some time as well. An easy way to figure out the best buyer is to take the listing agent’s assistance as they are quick to identify potential buyers.
Use the lower priced offer terms with the best buyer
If your real estate agent can inform the buyers’ agents that you’ve received multiple offers, it will automatically make the top potential buyers want the property even more. In case the low priced offer is bound by a quick closing, including offers that do away with all contingencies in just two weeks, you can easily leverage such terms with your higher priced offers.
It is always a great idea to take all these terms and prices and try to get just one buyer to offer the best of each. In case the best buyer doesn’t come in at the desired or highest price, simply counter them to match terms and prices of another offer.
Always try to keep a backup offer
Avoid getting back on the market as this may make you lose the momentum and you may not realize the same terms and prices again. Any buyer who sees a house go back on the market often get spooked and believe that there is something wrong with the property.
Thus, when you get multiple purchase offers, try to get the 2nd best buyer for a backup position. You may ask them to accept it in writing or if they refuse to agree in writing, make sure the agent stays in contact with all their agents until your first buyer removes all the contingencies. If you keep an option to slip in the second buyer later on selling the house, you must give them the opportunity to buy it to avoid going back on the market.
In a nutshell, multiple offers should not come as surprise. Study and know the market and take planned moves to seize the best offer. Also, don’t forget to hire an experienced realtor to further streamline the process.