What To Consider When
You Receive Multiple
Offers For
Your
Home!
Gettingmultiple offers is every seller’s dreamcome true,
and yet, when it happens, you might be daunted by the
task of choosing the best possible buyer. Evaluating
each candidate’s strengths and weaknesses is the
only way to determine which one you should work with
to close the deal. This often turns out to be the highest
bidder, but not always. There are a number of other
factors to consider beyond dollar amounts. Here’s
what you should ask when weighing each offer.
ARE THEY PRE-APPROVED?
While pre-approval doesn’t guarantee that a buyer will
obtain the necessary financing, it does indicate their
seriousness. The pre-approval process requires hard
evidence of the candidate’s financial capacity to pay
the mortgage. If a buyer has gone through these steps,
it shows both earnestness and a strong likelihood that
the offer is solid.
WHAT ARE THEIR CONTINGENCIES?
The highest offer may come with numerous
contingencies, some of which could cost you
considerable time and money. You first have to weigh
contingencies from a financial perspective. You may
find that once you tally up the numbers, the offer isn’t as
lucrative as it first seemed. Additionally, you may wish
to consider the amount of work involved in agreeing to
the contingencies. Accepting a slightly lower offer with
fewer contingencies could very well save you a lot in
the way of energy and effort.
One particular situation to be cautious of is when the
buyer’s offer is contingent upon the sale of their current
home. If this is the case — and you don’t immediately
run in the opposite direction — you may want to look
into the details surrounding that sale and make an
educated guess as to how quickly it might occur.
WHEN IS THE PROPOSED CLOSING DATE?
This won’t be much of a concern if timing isn’t an
issue, but if you have a particular schedule in mind, it
may play a large role in your choice of buyer.
HAVE A BACKUP
No matter which buyer you go with, it’s prudent to
have a backup plan. Ask your second best buyer if
they’re willing to accept a secondary position. Even if
they don’t agree in writing, make sure your real estate
agent stays in touch with them. The last thing you want is
havingtore-list,asyou’reunlikelyto get the same response
the second time around.
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