A Seller's Guide to Evaluating Multiple Offers
If you are selling your home, receiving multiple offers would feel like dream come true, right? With fewer homes in the Des Moines housing market (just look at the 2017 stats), strong demand and good interest rates, multiple offers are more likely than you think. However it is important to remember these tips when evaluating multiple offers.
Check out these tips for evaluating and selecting the best offer on your home!
Identify the Best Buyer
Many sellers will go after the highest offer and not evaluate anything else. However, the best buyer isn’t always the one with the largest offer. The best buyer is someone who has gone through the house on several occasions and has made themselves known. This buyer is likely pre-approved by a local mortgage company, working with a local agent and has been searching the market for some time.
Communication is Key
As a seller, it’s important to communicate with all of the potential buyers. Inform them that there are multiple offers on the table and request them to provide their “best” offer. Let them know that you have set a date to review all of the offers on your home.
Evaluate Mortgage Qualifications
When your agent discusses a buyer’s qualifications, they mean the buyer’s ability to obtain financing and their demonstration of financial resources. It should be your goal to find a buyer that will be able to handle the financial responsibility of purchasing your home in your determined time-frame.
Look for Red Flags
When selling your home, it’s important to look at more than just the offers. If a buyer with the highest bid made that offer because they wanted to win a “bidding war”, there is a chance that they’ll back out or question their decision and ultimately walk away from the sale. Many people know this as “buyer’s remorse”.
There are several types of contingencies sellers need to consider when they sell their home:
- Home Inspection. The most important contingency could easily be the home inspection. This gives the buyer the right to have the home inspected by a professional. If something is found needing repairs or to be replaced during the inspection, the buyer can request that it be fixed or that you cover the cost of said repair upon closing. This is an important step in the home selling process and it is not advisable to waive the inspection contingency.
- Appraisal. A third party hired by the lender evaluates the market value of the home with this contingency. If the appraised value of the home is less than the sale price, the buyer is allowed to back out of the deal. Waiving this contingency could be risky.
- Mortgage. As mentioned above, you don’t want to sell your home to someone who can’t pay for it. A mortgage contingency helps protect both the buyer and the seller from entering into a sale without the correct loan. Waiving the mortgage contingency could be a gamble, especially if the lender denies the buyer’s loan.
Work Closely with Your Real Estate Agent
As a seller, navigating multiple offers on your home can be stressful and overwhelming, especially if you don’t have the right agent. Space Simply will work closely with you and the offering parties to make sure you get the most for your home - give us a call at (515) 423-0899 today!
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