4 Tips for Navigating Multiple Offer Situations
4 Tips for Navigating Multiple Offer Situations
In the current market, a well priced house in a desirable area may get multiple offers. If you are the seller this is great, you just wait for the best offer and hope the price is driven up as a result. We have spoken at length in our previous blogs about how sellers can best to position their home for a quick sale at a desirable price. Check out our previous posts in the “Our Blog” tab at our website http://www.jacksonvillehomes365.com/our-blog/
This week we are going to dive into ways to get multiple offers and how to negotiate it when you do.
1. Price it aggressively
As we have discussed before, pricing the home properly is a big part of attracting the kind of attention that results in good offers quickly, and possibly multiple offers. You should work with your Realtor® to determine what that price should be. Factors like the net amount you will need, play a big role. Every seller is worried about leaving money on the table, that is, selling the home for less than the buyer would have been willing to pay. In today’s market with all of the tools at their disposal, buyers are as savvy as ever and they know a good deal when they see one. If you are willing to hold on to the property you may be able to get a little more money for it, but the costs of doing so should be a factor in your decision (property tax, mortgage payments, insurance costs, etc).
2. Make your home stand out
Price is one way to do this. Painting, decorating, staging, great photos, landscaping, and memorable features are other ways. You want the potential buyer to be able to picture themselves living in your home. More than that you want them to be really excited about the idea. If there are four or five comparable homes on the market, the one that makes people feel good about being there might get multiple offers while the others don’t get any. For tips on how to do that, you can visit our previous blogs at the link above or just give us a call. We would love to come see your home and offer advice or just be there to bounce ideas off of.
3. Don’t choose too quickly
If you get more than one offer in quickly, we can update the listing letting potential buyers know that there are multiple offers. We will ask for highest and best offers and set a date and time by which all offers need to be in. Potential buyers that have made offers may increase their offers to ensure that they are competitive. This could also have the effect of a bidding frenzy. The peer pressure effect and fear of missing out could result in other’s wanting to get in and see why the property is so popular. More eye balls means more offers and more offers means you have the opportunity to pick the best one for you.
4. Consider the offers carefully
When the offers start really rolling in, consider all of the factors. You may get several offers that look similar but have different conditions. We can work with you to determine which offer puts the most money in your pocket. For example, one offer may come in at asking price while another is a bit above. If there are no other conditions the highest offer is best. If the higher offer comes with the condition that the seller will help pay some closing costs, a slightly lower offer with no conditions might be better. Some loan products can close faster than others. Some lenders have better track records than others, closing on time and getting loans approved. This is one place having a professional working with you is a big benefit.
There are some other things to consider. Interest rates are expected to increase again in the coming weeks or months. As rates rise, buyers are not able to borrow as much money at the same monthly payment. Meaning there likely will be fewer potential buyers at any given price. This isn’t a reason to panic though, the recent increases have not had a dramatic impact at most price points. If you get an offer that you would normally be happy to accept, don’t delay accepting because a better offer could be out there somewhere. Holding out too long may mean missing out on good offers. Strike while the iron is hot, a bird in the hand is worth two in a bush, insert whichever cliche you prefer. We would love to sit down with you and go over all of the numbers and factors to determine the best way to market your home.
