When you put your home on the market for sale, you expect to identify a potential buyer who comes with an attractive offer of the home and you both seal the deal after a short while. In some cases, a seller may receive multiple competitive offers from potential buyers and the negotiation process may become overwhelming. You should prepare for multiple offers and identify the ways in which you will come out on top with the best offer.
Consider the highest and best offer
The most attractive offer is often the one with the highest price among the multiple offers. Your first choice will definitely be the highest bid on your home but the price should not the only factor to consider. You need to confirm that the highest bidder can actually afford the home. If the buyer is financing the home through a mortgage, ask for proof of pre-approval in order to know the exact loan amount they qualify for before closing the deal.
You should accept an offer that is in line with the value of your home. This means that you should conduct a home appraisal and find out the value of your home in order to set an appropriate asking price. Browse our listings of Edmonds condos for sale to compare asking prices for similar homes in your neighborhood. Notably, a motivated buyer may offer more than the asking price in order to secure the bid. When considering the highest bid, ensure that its contingencies and requirements are favorable enough to make it the best offer.
Consider buyer financing
People buy homes in cash or through mortgages. A cash-paying buyer is an attractive buyer because cash sales close in a matter of days due to the absence of long processes from the buyer’s lender. Therefore, if you get a cash offer that is a bit lower than the asking price yet the other offers entail mortgages, you may accept the cash offer and settle the deal in a few days.
Buyers attach varying contingencies to their offers. A contingency is a provision for a future circumstance that the buyer gives before closing a deal. The buyer may state that they will close on the house only when they sell their current home and this may lengthen the process. The buyer’s offer may only be valid when the home passes an inspection or when it appraises for a specific amount. Ensure that the buyer provides a closing deadline that is line with your wishes. It is often advisable to enter into negotiations with a buyer whose offer has few contingencies to avoid a long settlement process that is often costly in the long run.
When dealing with multiple offers from potential buyers, you should seek help from your real estate agent who will help you identify the fine print clauses that may trap you into a bad deal. Sellers should avoid motivating buyers to increase their offers by staging a fake demand. You should be honest with potential buyers and avoid making promises that you cannot fulfill.
We work hand in hand with sellers from various neighborhoods in Edmonds to help them secure the best offers from buyers in the market. Your home could be the next property to join our listing of downtown Edmonds condos for sale.