Getting more than one offer at once can be both exciting and overwhelming. Here’s our advice.
As a seller it can be easy to convince yourself that multiple offers on your property mean you’ve priced it too low. If you’re working with a good agent, one who’s done all the significant legwork necessary to work out your neighborhood’s market, multiple offers reflect the fact that your home is priced well.
Here’s a quick frame of reference on another domestic market’s strategy: in California, listing agents price homes just below market value in order to encourage multiple offers, thereby creating a bid up scenario that may result in a higher selling price than a more traditional single offer sale. If you do find yourself receiving multiple bids, consider it a good problem to have. Several strong offers give sellers more negotiating power.
When you’re evaluating multiple offers, price may not be the sole consideration. Look closely at the deposit structure and financing. A low deposit or high loan amount could have a higher risk of falling through. A longer time until closing can create additional expenses for the seller, like carrying and maintenance costs. Lean on your agent’s experience here, take their advice, and have a lawyer look the contract over. Careless work during the preliminary stages will always make for headaches when the time comes to close the deal.
As you prepare to put your home on the market, consider the following questions. Do you want to close quickly? Do you want more money up front, or are you okay with payments structured over a longer period of time? Are you able to lease back or move out quickly? Clarifying your needs up front will help make the multiple offer scenario go smoothly.