If you’re selling your home and the number of home buyers exceeds the number of homes on the market, it’s likely that a multiple offer situation will arise. It’s a very common occurrence these days, and can be very advantageous to home sellers, IF handled properly.
What Makes a Good Offer?
When evaluating multiple offers, here are a few things to consider.
- Price. This is obvious, but not always the most important factor. You must consider all of the these factors combined.
- Financing. Is the home buyer using a loan, or is it all cash. If a loan, what type of loan? All cash is your strongest home buyers, but be sure to get proof that funds are in the bank.
- Inspections. Most transactions fall apart when inspections are performed. An aggressive home buyer will waive their right to home inspections, or will agree not to ask for repairs/credits upon an inspection.
- Contingencies. Is the purchase of your home contingent upon the sale of the home buyer’s? Are there any other contingencies that could cause this deal to fall through?
- Earnest Money. This is the amount of money the home seller retains if the home buyer doesn’t uphold their end of the bargain, and the deal falls through.
- Closing. Is the closing date scheduled on a day that is agreeable and doesn’t provide any problems for your move?
- Inclusions & Exclusions. Is the home buyer asking for anything to be included in the sale, such as furniture? Or, are they wanting you to remove things you really don’t want to deal with, like a swing set?
How to Compare and Contrast Offers.
If there are more than a couple offers, you’ll need a way to compare and manage your multiple offer situation. Many agents will forward you a flurry of emails with these offers, and follow up with a phone call to explain them. Scattered, unorganized, and confusing is the only way to describe it if your agent isn’t using a real estate platform like Transactly.
Transactly is the only platform that allows you to see all your offers at-a-glance, and compare them with your REALTOR®. If you’re not on Transactly, it’s probably a good idea to start a spreadsheet, or write down, the features of the offers you received. You need a clear picture of everything you have in front of you, so you make a thorough and informed decision.
Requesting a Best & Final.
Before comparing all offers, it might be best to request all buyers submit their best and final offer. While this can certainly improve terms in your favor, it can also be seen as a courtesy to the home buyers who made an offer on your home. Some of them may not know they’re competing against other home buyers, and will want to the opportunity to up their offer.
This is simply done by emailing each and every agent. Or, if you’re using Transactly, with a click of a few buttons the request is delivered to all home buyers that made an offer. You’ll be able to see when they received the best and final request, and when they adjust their offers.
Settling on the Best Offer.
Whether you decide to request a best and final, or not, you’ll end up working with just one of the offers. You may decide to counter that offer, or simply accept it. Whatever you work out, it may be best not to reject your the other offers. Simply notify them that you’ve accepted another offer, and that you’ll notify them if something doesn’t work out.