You know you’re listing is successful if you receive a lot of offers. It means that your marketing strategy was effective and all your sacrifices have paid off. Now comes the tricky part. How do you know which offer to take? And how do you know that you’re getting a good offer? Choosing the best offer can be stressful and in some cases, frustrating.
Here are some ideas to help you decide which deal to go with.
1. Find the best buyer. The best buyer doesn’t have to have the highest offer. Don’t go with just the highest bidder. If he or she just made the high offer to win the bidding war, there’s no guarantee that he or she will see it to the end. The highest bidder might get cold feet or might not be able to support the bid. So, how do you know who the best buyer is? The best buyer is the one who has shown genuine interest in the house and has seen the house a couple of times before. He or she might not have the highest bid but they are not the lowest either. The best buyer would probably be the first person to see the house and has made known his interest through you or your agent. This buyer would most probably be working with an agent and has been pre-approved for mortgage. Your real estate agent can easily spot the best buyer so you can consult with your agent regarding this.
2. Use your bad offers to bring out the best. One of the advantages of having multiple offers is that you can use other offers to get better ones. For example, you can tell the other bidders that you have this x number of offers, the other bidders will be more motivated and will try to outbid each other. Do not look at the amount offered alone, you also have to factor in what goes with the offer. For instance, if a lower bid offers quick closing or removal of all contingencies in two weeks, that would be a good deal. Take all offers and use these offers to get the best out of each bidder.
3. Have a backup buyer. There is always a chance that something might happen after the bidding and your chosen buyer does not go through with the sale. There are lots of reasons for this like getting cold feet, not being approved by the bank, last minute changes, or the buyer might have seen something at the inspection he doesn’t like about the house that he didn’t see before. You should always have a back up in case these things happen. You don’t want to go through all that process again. Also, houses that return to the market are viewed negatively because the buyers will be thinking that there must be something wrong with the house. You can talk to the second best buyer to be your backup buyer just in case.