Receiving multiple offers is common in today’s real estate market. Many sellers will encounter this issue. While it may seem like a good thing, and it often is, you need to be aware of how to choose the right offer.
Highest Prices Doesn’t Always Win
It’s important to understand receiving multiple offers on your home isn’t like an auction. The highest bid doesn’t always win. You want to choose the best buyer offering the best terms, not just the highest price.
Possible Appraisal Issues
A high offer could cause the issue of an appraisal coming back too low. While this is certainly an issue, it can be solved. If this happens, the seller can reduce the price or the buyer can bring more money to closing. It’s important to come to an agreement in this scenario.
Is Cash Always Better than Financing?
While cash is alluring, it’s not always the best choice. Many all cash buyers expect a discount because they come to the table with cash. A cash offer may be lower than one with financing and depending on the circumstances may take just as long to close the deal. When you have multiple offers, don’t allow a lower all cash offer to entice you if you have another higher offer with strong financing.
Sometimes, you’ll receive an offer with a preapproval letter that’s far stronger than an all cash offer. Make sure you look at all the factors and don’t get blinded by the cash in front of you.
Other Important Factors to Consider
When you have multiple offers to choose from, price is only one of the many factors. You must consider other parts of the offer, as well. Some offers may look great, but they may have some type of contingency or a timeline you simply don’t like.
Buyers may also ask sellers to pay some of the closing costs or other fees. It’s important to look at the entire picture and not just a few of the main factors, such as price and timeline.
When you have multiple offers on the table, it’s time to turn to your highly skilled real estate agent for advice. They deal with home sales every day and they will be able to comb through each offer to show you the differences. It’s ultimately your decision, but your agent will certainly help you make the right choice.
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