When selling your home you want to receive several offers, but this means that will you have to decide which one is the best. While not always easy, it is very important to determine which offer will be the one to go through to the end and pay off. Here are a few tips to help you navigate the stressful process of evaluating the best offer.
Who is the Best Buyer?
Remember: highest price doesn’t mean best offer. A buyer may have just offered high to win the bidding war, but it doesn’t mean they are fully committed to buying your home and could still change their mind. Work closely with your listing agent to determine who the best buyer may be. Look for the buyer who has seen the home several times and made a point to let themselves be known by you and your agent. They may have been one of the first to see your home when it landed on the market. It is also very likely they are pre-approved for a mortgage and have been working with an agent for quite some time. Find the buyer who will be committed through the entire process no matter what issues may arise.
Lower Priced Offers Can Help Negotiate
Receiving multiple offers not only means you have options when it comes to buyers but that you also have options to use for negotiating. No offer should be insulting to you; instead, embrace the fact that you now have many options when counter-offering. Be open with your offers and let them know you’ve received others. The ones that want the home the most will work even harder. If the highest offer isn’t the one that comes out on top you can counter with them to match another offer and terms. This way you may end up closer to your asking price.
Back-up Plans are a Good Thing
Having a back-up buyer is always a good option. Talk with your second-best offer and see if they will agree to a ‘back-up’ position, in case something falls through with your number one offer. The last thing you want is to have to put your home back on the market. If you can, get them to agree to the second position in writing. If they are not interested in doing so, be sure that your agent stays in contact with them until the first buyer removes or clears their contingencies. Before you get started know what terms and conditions matter most to you, as these will help you negotiate for the best possible scenario, especially if you have multiple offers.
Yes, you want multiple offers on your property. This shows that you’ve presented your home in the best possible light at the best price for your market. It’s easy to get stressed out with multiple offers but you should plan for it, because it can work in your favor in more than one way. Work with your agent closely and be ready to negotiate and you will be successful in uncovering which offer is the best offer.