With not enough homes up for sale to satisfy demand, sellers can almost be guaranteed these days to get many bids from multiple buyers. Not a bad problem to have, is it? But it can be tough knowing which offer to choose. Here are some tips on how to manage multiple offers from buyers.
Start With Price
This is a good place to start, but you shouldn’t end here. That’s because you may get lower price offers that waive inspections and other contingencies, which would be worth more to you in the end than just a few thousand dollars extra. Of course, the highest price offer is the one that will first pique your interest. But just remember that the highest bidder may not necessarily have the ability to qualify for an adequate mortgage.
You’ll also want to consider how much cash each buyer wishes to put down. In general, bigger down payments and lower home loans make it more likely that the buyer will be able to get the mortgage they need to close the deal.
Take a Look at Contingencies
Just a few years ago, no one would have considered waiving a home inspection or appraisal. But in a crazy seller’s market like we have right now, buyers are waiving contingencies left and right to appeal to sellers. In any offer, there are always clauses include that allow the buyers and sellers to bow out of the deal if those conditions aren’t met. Making sure the property passes an inspection or appraising for a fair amount are two contingencies that buyers are waiving.
As a seller, contracts that have fewer contingencies are better in the end because the buyer won’t have as many chances to cancel the deal.
Worries about qualifying for a mortgage don’t come into play when a buyer offers all cash, meaning the deal is more likely to close, and often sooner. If you have no cash offers, then the next best thing is to see that they have a pre-approval for the necessary amount. An offer from someone who goes in blind without approved financing is considered a much weaker prospect than a preapproved buyer.
As a seller, you’ll also want to know which mortgage company the buyer is planning on using. Your agent will likely have a history of dealing with certain mortgage providers and they’ll know which ones tend to close quickly with the fewest amount of snafus.
A seller who doesn’t have to sell their existing house to buy yours is a stronger prospect than someone who has to go through the time and hassle of selling their home before they can pay you for yours. Any buyer who can close quickly and has no home sale contingencies is in your best interests. You can close more quickly and there’s less of a chance they’ll back out due to failure to sell their home first.
Contact Berkshire Hathaway Premier Properties
Our Realtors can field all the many offers you may get for your property. They will let you know which ones are strong and which ones you should bypass. To connect with one of our experienced agents, contact Berkshire Hathaway Premier Properties today at 713-862-0000.