CHOOSING BETWEEN MULTIPLE OFFERS WHEN SELLING YOUR HOME

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How to choose the best offer in a bidding war on my house?

As a seller, you may be lucky enough to receive multiple offers on your home While this may seem like a dream come true, it can also be difficult to choose the best offer from the prospective buyers when you’re in a bidding war. Here are some factors to consider when choosing between multiple offers when selling your home

Know what your priorities are when selling your home before any offers come in.

Why am I selling my home?

What is my preferred time frame?

Am I looking for a quick sale or the highest offer?

What do I need to net from the sale?

Highest Offer Isn't Always the Best

Consider these factors beyond the price:

Earnest Money Deposit: Higher deposits show serious intent.

Cash Offers: Quicker and smoother transactions

Loan Type: Some loans are easier to secure than others.

Down Payment: Larger down payments indicate financial strength. Contingencies: Fewer contingencies are better Common contingencies include:

Appraisal Contingency

Home Inspection Contingency

Financing Contingency

Sale of Home Contingency

Closing Date

The closing date should align with your timeline

Choose an offer that meets your schedule needs:

Quick Closing: If you need to sell fast, opt for the shortest closing time

Flexible Closing: If you need more time, choose an offer with a later closing date.

Appraisal Gap

Ensure buyers are prepared to cover any difference between the appraised value and the offer price. Discuss how they plan to handle an appraisal gap.

Escalation Clause

Real Estate Agent's Role

Understand escalation clauses, which automatically increase the offer to outbid others by a set amount:

Maximum Price: Ensure you know the highest price the buyer is willing to pay Avoid Low-Balling: Be cautious of buyers using low initial offers to trigger the clause

Flexible Timeframe

If your move depends on buying another pr b i h fl ibl i li be th rea

Your agent is crucial in this process They can:

Review Offers: Help you understand each offer’s details. Negotiate: Assist in negotiating terms to meet your needs

Advise: Provide insights to help you choose the best offer.

By considering these factors, you can navigate multiple offers effectively and select the one that best meets your needs