Selling your home in a market that favors sellers might seem like a dream come true. The opportunity to capitalize on the value of your property with buyers that are both eager and willing to buy is the ultimate situation. The journey of preparing your home for sale, listing it, showing it… all of it culminates in the moment when you receive your first offer. You surge with excitement, but should you? And what happens when you receive more than one offer? More than one offer can be a seller’s dream, but it can also complicate the matter when there are so many things to consider because it’s not always about price.
While it may seem counterintuitive to consider anything but the highest offer, the price is only a small part of what an offer could contain. That’s why it’s important to carefully consider each and every offer, and compare them with the help of a real estate professional. The true value of an offer could be more (or less) than you initially thought, based on the details of the deal.
- Contingencies- Not all prospective buyers are as ready to purchase your property as they might seem. Some offers come with a contingency that their current home sells before they purchase yours. In a seller’s market, this may not seem like a big concern- surely they can sell their home in a reasonable amount of time? Even if they can, this could result in delays. Your time is valuable, and a contingency like this could add stress to an already time-sensitive situation. If they can’t sell their home before your closing date, the deal may not go through. Would you be willing to accept a higher offer, even if it meant having to wait additional time for your sale to close?
- Financing- A smart, motivated buyer will attach a certificate from their mortgage lender to show they can afford the home and have mortgage preapproval. If you receive and offer from a buyer than can’t show this sort of preapproval, you’re taking a gamble when accepting their offer. Some buyers may offer more than they can realistically pay, which could mean your entire deal falls through when they’re denied the loan. A pre-approval letter in hand lessens the worry.
- Closing dates- Sooner is often better, but not all buyers are going to be ready when you are. A later closing date could mean your money is tied up for an additional few weeks. If you’ve already purchased another home, you may require a month of bridge financing while you wait for closing. While this is certainly an option, it can be an expensive hassle to go through- and could end up costing you out of pocket.
Assessing competing offers is not always easy, especially in a market where so many people are willing to wheel-and-deal to get what they want. Each offer will have its pros and cons, and it’s up to you to decide which one best fits your family’s needs and goals…or if perhaps you should wait for a better offer to be submitted!
