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February 7, 2022

How to Make the Most of Real Estate Multiple Offers

By

Derik Stephens

How to Make the Most of Real Estate Multiple Offers

Selling your home can turn out to be quite stressful, especially when you've created a multiple offer situation.

Of course, any acceptable offer is ideal but the question afterwards is “now what?”.

If two or more buyers submit acceptable offers, at a certain point, the offers will be linear and you as a seller will need to evaluate other terms.

When it comes to selling your home, price isn't the end all be all.

Other terms will need to be considered.

My best recommendation is for sellers to learn how to compare multiple competing offers with their real estate agent to determine which offer is  the best fit  for their unique needs.

Even though there is no such thing as too many offers, as a seller in a multiple offer situation after multiple showings can be overwhelming.

Naturally, the highest purchase offer will immediately catch your attention.

Before you choose a buyer based on the highest purchase price alone, I suggest that you also weigh the following considerations in your decision-making process.


Pre-Approvals 

When receiving multiple offers, you should pay attention to how the buyers are obtaining financing, the type of financing and the probability of their financing.

A Pre-Qualification is typical but a Pre-approval for a mortgage loan removes an element of doubt that exists when a buyer engages in the mortgage lending process. 

Contingencies 

Although some buyers will submit competitive offers, the offer may also come with contingencies.

Some contingencies may prevent you from successfully selling your home if the buyer fails to sell their home.

Offers without any contingencies are typically more favored, even if the offer price isn't the highest.

Closing Timeframe 

If you need a quick close or additional time after closing to vacate the property, you may desire a buyer who is willing to cater to your closing timeframe.

In contrast, if a buyer insists on a timetable that does not work with your schedule, a rushed close may be more cumbersome during the purchase transaction.

Other Competing Offers 

Even if you believe you've identified the most desirable offer, you must acknowledge other reasonable offers.

In North Carolina, the agent is supposed to submit ALL offers to the seller.

Ask for your agent to create a multiple offers spreadsheet so your offers will be easy to view.

Unfortunately, sometimes, a seller may accept an offer only and negotiations fall apart before the transaction closes.

When the best  buyer is no longer an option, your agent should reach out to the next in line as a backup offer. 

Expert Advice 

Remember, you're on your own when selling your home through a listing agent.

Your agent has a fiduciary responsibility to protect your best interest. When considering multiple offers, ask your agent for advice.

They'll objectively help you analyze each offer individually to identify which has the most benefits.

When you're selling your home and it’s in a hot market, you’ll need to be prepared to field multiple inquiries from multiple qualified buyers. 

Evaluate these offers using what I’ve suggested above and consult your Realtor for choosing the offer that harbors your best interest.

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