We are seeing more and more multiple offer situations in our market lately, and here’s how we are handling them with buyers and with sellers.
Price is the first thing that sellers are concerned with when they have multiple offers, and rightly so. However, there are a number of other factors that should be considered as well.
For buyers, coming in with a good price is extremely important. It doesn’t have to be the highest offer, but it should be a fair one. To get the right number, you’ll need to look at recent sale prices, the prices of the homes currently on the market, and the prices of homes that have gone under contract. Only then can you make an informed offer to give yourself the best possible chance of getting it accepted.
Next, let’s talk about inspections. Many buyers are in a situation where they will waive the home inspection. Obviously that’s a huge win for the seller. Most offers have home inspection contingencies, which gives the buyer an out if the inspection results don’t come back to their liking. If they waive that contingency, the offer is much stronger and much more real to the seller.
When it comes to the appraisal, that’s where things can get tricky. If the offer you accepted is too high, the home won’t appraise and the buyer won’t be able to pay for it anyway. Cash buyers won’t have appraisal contingencies, however.
The closing date is another area where the buyer can gain an advantage in the seller’s eyes. If you work with them on their preferred date, your offer is that much stronger.
As you can see, there are a few different areas other than price that you should look at whether you are buying or selling. If you have any questions for us about dealing with multiple offers or anything else related to real estate, give me a call or send me an email. I look forward to hearing from you soon.