Helping Sellers Choose Between Multiple Offers

The housing market is hot and with limited inventory multiple offers is a common occurrence. It's a good problem to have if you're a seller. But how do you choose the best offer?

Start with Price and Terms

The offer with the highest price is going to get your attention, especially if it’s close to or above your asking price.  But, you will want to make sure that the buyer is qualified.  Those offering the most money might be stretching their finances and run into trouble before closing.  Also, asking for a sizeable earnest money deposit can help discern the seriousness of the buyer.  Pay attention to the amount that the buyer is planning as a down payment in the transaction.  A larger down payment means a lower home loan and may ease a closing. Your REALTOR® can help you look at all the details.

Contingencies

When buyers make an offer, they’ll often include a few conditions or contingencies that may allow them to cancel the deal or reduce the price. As a result, sellers may consider taking a lesser offer with fewer strings attached.  With so many issues today surrounding appraisals, waiving the appraisal contingency is a definite plus for sellers.  Normally, the house must appraise at the offer price.  If not, either the buyer would have to make up the difference or the sale price be reduced by the seller to match the appraisal.  When the appraisal contingency is waived, a low appraisal is not a deal breaker.  In any event, Looking for fewer contingencies in an offer may reduce the chances for difficulties toward closing the contract.

Mortgage Pre-Approval

Make sure that the buyer is preapproved for the home loan. An offer from a preapproved buyer usually is stronger than an offer from a buyer who hasn’t made any financing arrangements.

Closing Date 

If you’re reviewing similar offers and want to move soon, a quicker close can be a deciding factor. But if you’re not ready to move, you may be better off with a buyer who’s willing to wait for you to find another home.

Buyer ‘Extras’

Many times a buyer will send a personal letter to tug on your heartstrings and, if this is an emotional sale for you, it may pull your decision one way or another. If you’re considering several offers that have similar price and contingency terms, these kinds of sweeteners can tip the balance.

The Bottom Line

Getting multiple offers when you sell your home seems to be a great situation to be in, but it can be tricky.  Evaluate each offer fairly and consider advice from your REALTOR® to choose the best one. Ready to sell your house? Contact Three Rivers Association of REALTORS® for help finding a REALTOR® that can help meet your needs. 

Three Rivers Association of REALTORS® is a non-profit organization that services more than 1,000 REALTOR® and Affiliate members. Three Rivers Association of REALTORS® is affiliated with the Illinois REALTORS® and the National Association of REALTORS®, and works to provide our members with the tools and information they need to remain successful.  We also strive to keep our membership informed as to the latest developments that affect housing and the real estate industry in general. The Multiple Listing Service, education programs and an extensive political action program are just a few of the services that Three Rivers Association of REALTORS® provides for its members.