One of the many dreams of sellers and agents is to quickly sell a home for a great deal. However, having multiple offers can be pretty stressful and confusing! There are many different factors to consider to close a deal – the seller and the agent need to ensure that they get the best offer. Listed below are five practical tips for handling multiple offers:
1. Remember that the highest offer doesn't mean the best offer!
Although a high-priced offer can be very enticing and exciting, sellers must know that it doesn't automatically equate to the "best offer." Selling a house is more than just the value of the home converted into cash - it's important to consider timelines, down payment amounts, contingencies, and counter-offer requirements. Therefore, make sure to set the goals clearly and attach them to the potential buyer's interest in buying the house.
For instance, after seeing the buyer's offer, take time to assess his/her financial strengths and what else they are asking for in the deal (repairs, etc.). How much of a down payment is coming in? Consider all of the risks in order to have the most seamless long-term transaction!
2. Take a Look at all Aspects of an Offer.
Home sellers and their agents typically want their house to be sold quickly – but with the best offer. Multiple offers can be very confusing and overwhelming to sift through. Therefore, when surveying all offers made, always keep in mind the timeline they each offer. One may request a longer or shorter escrow and that's something to consider!
Handling Multiple House Offers: Get the Best Offer, Not the Highest Offer and Check the Schedule's Mutuality!
3. Be Strategic.
There's often a buyer out there willing to do what it takes to close the deal -- especially in a competitive market. Use this to your advantage as a seller's agent! Planning and negotiating are two crucial factors to close a real estate deal, that's the number one rule in real estate. Strategically planning is essential because it allows sellers and their agents to identify which offer would really be the best. Moreover, through logistics, deals can be negotiated that are hopefully wins for both sides.
4. Goals and Expectations Should be Clear.
Multiple offers can overwhelm a seller and cause them to rush the transaction.
For instance, the seller should identify whether the money plays greater concern or the immediacy of closing the deal. This often leads to counter-offers, which are very common in today's market. Counter-offers are important because they allow each party to hopefully get what they want. However, seller's need to be advised that too many counter-offers or very specific expectations are likely to make a potential buyer walk away from the transaction. So, always remain true to realistic goals and expectations and establish them ahead of time.
Handling Multiple House Offers: Give Time to Potential Buyers and Listen to Their Presentations So It Could Be Aligned to the Seller's Goals!
5. Wait for Offers to Come In.
If sellers want to close a deal immediately, chances are, they may miss the best offer. Be patient with potential buyers when presenting and negotiating. Allow a few days or a week or so to pass with the home on the market to see what comes in. Also, if a seller will counter-offer a buyer, be patient in considering their responses. Turning house selling into a race will not benefit any seller – 18-24 hours is not enough! Patience is power!
Final Thoughts
Yes, it is hard to choose from multiple offers. That is why it is vital to follow these tips to make the transaction a pleasant one. One way or another, it's the sellers' and agents' responsibility to find their perfect match (buyer) based on goals, offers, and house value.
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