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Selling Your House and you’re in multiple offers?
Dated: January 6 2021
2020 has been a crazy year, to say the least. I want to address a problem that sellers are facing right now. I say “problem” lightly. Due to the scarcity of homes on the market, it seems every home that I have listed has gone into multiple offers. I am sure you’re thinking “what's wrong with that?” I hear ya!
BUT sellers can get burned and lose a ton of momentum if they accept the wrong offer. The most common two questions I am asked :
“How do I handle multiple offers on my home?” or How do I deal with a bidding war on my home?”
Before we get into how to handle multiple offers, let’s first discuss how you can increase the odds of actually getting them. One of the best ways of getting multiple offers in a strong seller’s market is to defer your contract acceptance for a short period. Deferring showings works like this – you list your home on a Monday or a Tuesday into the multiple listing service, and you allow showings and accept offers all through the following weekend.
What you are doing is creating a demand for your home. You are getting the word out your home is for sale and putting people on notice. It plays tricks on the buyer's mind. If they are working on an offer they tend to go high in the beginning. It eliminates lowball offers.
Keep reading to see the best ways to deal with multiple offers and bidding wars on your home. Knowing how to handle multiple offers will not only go a long way to having a successful transaction but maximize your profit.I am going to give you 5 tips you should be mindful of as you and your agent review your offers:
The Highest Offer is not always the best offer. - There are so many things you need to analyze.
Is there a contingency? That means does the buyer have to sell another property to purchase yours? Those are never my favorites. Too many moving pieces.
Have they requested an option period? Good for the buyer, not good for the seller. Basically, they can tie up the property for 7-10 days with a small deposit (not refunded if they don't move forward) but you are burning daylight on a hot property. I am not saying to reject an option but it's something you need to weigh in the decision-making process.
Can they truly afford the house? Be sure your realtor does more than just get a pre-approval letter. You must insist they call the buyer's lender and DRILL down on the terms of the pre-approval.
Will your house appraise? When in multiple offers the bidding gets crazy sometimes. So what happens is the buyer puts in an offer and your house doesnt appraise. Anytime someone offers OVER your original list price be sure to have an appraisal waiver signed. That will protect you in that case. The buyer would be responsible to come up with the difference between the negotiated price and the appraised amount. You NEED this “insurance” policy.
How long until they can close? When my clients are in multiples I try to close ASAP. Why? Because time is a deal killer anything can happen. So if two deals are similar and one is a bit higher with a longer close date, many times I would advise my client to take the lower offer with the shorter close.
Every deal is different. This is just to give you some thought starters as we negotiate a VERY tight market. I will have a lot more information in the coming days and weeks but I think this is enough to chew on for now.
I LOVE to serve my clients and offer them the benefit of my 25 plus years in the real estate industry. Rumor has it that I am a pretty tough negotiator. If I can ever be of service or you just need a sounding board please feel free to reach out.
Whether you’ve decided to settle, sell, or invest in Central Texas real estate, you deserve a level of service that only an expert can provide. My name is Lisa Copeland and I have “Reinvented The ....
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