Multiple Offers: How To Choose the Best One
In a hot sellerβs market like we are currently experiencing in Seattle, you have probably been hearing about homes getting multiple offers. How do you know which offer is the best offer? It may seem simple – take whichever offer is the highest right? But sometimes, that offer that is $50,000 over asking, may actually be a worse offer than the one that is $40,000 over asking. Itβs important to look at all of the details of the offer when making this decision.
In this video, we discuss what you should do if you receive multiple offers and things to consider when reviewing each offer in addition to price. If you are thinking about selling your home in 2021, you need to know this, as it is very likely that you will end up in this situation.
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Steve π² (c) 206-769-9577 π§stevehill@windermere.com
Sandra π² (c) 206-271-7100 π§sbrenner@windermere.com
Video Transcript:
Awesome. You’ve received multiple offers. Now which one should you choose? Do you know that just because you received an offer $50,000 over your asking price, that doesn’t necessarily mean that it’s a better offer than the one that was only $40,000 over your list price? Believe me, I want you to pocket the most amount of money for your home too, so I understand why you might be confused here. I help our sellers evaluate their offers, and sometimes for very specific reasons, the offer they choose didn’t have the highest price. Hi, everyone. I’m Sandra Brenner with the Brenner Hill Team at Windemere, and we’ll break down some of the key things to think about besides price when reviewing multiple offers.
First on the list, the closing date and possession date. Do these dates work for your desired timeframe, or will you be homeless for a few weeks while you wait for your next home to close? How important is that date to you? What type of financing does the buyer have? Are they offering cash or getting a loan? Did you know the type of loan needs to be taken into consideration based on the condition of your home and other contributing factors? Certain loan types have stricter appraisal requirements than others. Imagine if you found yourself in a situation where you’re now required to make a $10,000 repair or replacement, or the buyer’s lender says, “Nope, we’re not funding this home.”
Are they offering any additional down payment? If the appraised value does not come in at the contracted purchase price? In a hot market, most likely everyone is offering over the asking price, but does that mean that you will actually receive that price? Not if you potentially accept the wrong offer, or don’t counter with certain seller protection items in the contract.
How about the inspection contingency? Most buyers will want an inspection before agreeing to purchase the home. Truthfully, you can’t blame them for wanting to protect themselves from unforeseen circumstances. However, again, if you watched our video on home inspections, you know that providing buyers with a pre-listing inspection report is a win-win for everyone.
Let’s just use the scenario of receiving an offer that is $50,000 over asking, and a buyer has a financing contingency and is putting 5% down. You have another offer that is $40,000 over asking. That buyer also has a financing contingency, however, they are putting 20% down, and also have a low appraisal provision where they will cover an amount towards a low appraisal. When home prices are escalating so quickly, the prospects of a low appraisal are much higher. So in this scenario, the overall strongest offer may not be the highest offer. These are only a few things to think about when you’re evaluating multiple offers. Having an experienced agent like Steve and I who have sold hundreds of homes in your corner to help you comb through the fine print details of multiple contracts will save you a ton of stress and anxiety.
Rest assured that our process will get you the most money for your home and that you won’t run into a ton of issues that could cost you time, money, and stress later in your transaction. To find out some of the other reasons that the highest priced offer may not always be the best choice for you when selling your home, hit the contact us link below. We’re Steve and Sandra, and we’re here to help you have a fun, empowered, and informed real estate experience by guiding you every step of the way. Talk to you soon.
