Receiving Multiple Offers

In the world of Real Estate there is nothing more wonderful than receiving multiple offers on your home.

This can and does often happen after an open house, an exclusive realtor only showing, a special announcement, or other highly successful marketing technique being utilized.

If you are lucky enough to be a seller located in an area that sells quickly and is highly sought after, you can often receive multiple offers.

Even in a buyer’s market a seller can sometimes get multiple offers on their home. Generally certain things will drive a multitude of offers your way and when and if this happens to you it’s time to celebrate the opportunity and, more importantly, make some decisions.

 

Making a Choice

When looking at multiple offers not all offers are created equal and it’s important to realize that the “highest bid” isn’t necessarily the best deal. Some offers come with contingencies that could slow down or even end up without you selling the home, such as the sale being contingent upon the buyer selling their home within a certain number of days. Other offers may come in with slightly lower dollar amounts but no contingencies.

Offers with no or minimal contingencies may be more appealing than those that come in with higher dollar amounts but a huge list of contingencies. You have to weigh every factor of the offer and compare each offer with a very close eye. Many times this is where the experience and knowledge of your agent comes in handy because they may be able to point out certain pros and cons that you may overlook.

 

Figuring the Final Selling Price

As we pointed out earlier, the selling price is not the only factor that should play into your final decision of which bid you accept. In many cases accepting a lower bid that sells the house immediately can save you thousands of dollars in mortgage payments for the time you are waiting for contingencies to be met and the closing to finally happen.

Factoring in things such as a lower selling price but the buyer paying all closing costs as opposed to a higher selling price but splitting closing fees is very important. You have to figure out what the real final price is that you will be selling for when the deal is done and you may find out that it’s not always as black and white as you think.

Helping with financing, taking on closing fees or sharing closing fees, paying for certain updates, making repairs, and keeping the home under your ownership for a month or even longer can add up the dollars that you are paying out or losing out on quickly.

These small, often unnoticeable expenses can add up and create a difference of thousands of dollars in the final sale price. Again, utilize the expertise of your agent to help you decide which offer is best for you and which one truly comes out the best financially when all things are considered.