Choosing From Multiple Offers

At 72SOLD, one of our key goals is to secure home sellers multiple competitive offers quickly. Getting a second, third or even fourth offer is an exciting experience many home sellers don’t get to experience. If you do find yourself in the enviable position of having multiple offers to choose from, you might struggle to make a decision.

There are factors beyond price worth considering if you’re a home seller with several competitive offers to choose from.

What to Consider When Reviewing Offers

The dollar amount is not the only important characteristic of an offer. Some complications may even make the highest offer seem less appealing than some of the lower alternatives. A seemingly attractive price may come with challenges that could make competing offers preferable for your situation.

• Financing Method: Nothing is faster than cash when it comes to a fast sale and a reliably straightforward closing process. Cutting out the added steps of loan approval can greatly accelerate closing. Sellers comparing financed offers may want to evaluate the relative strength of the bidders’ pre-approval letters and the dependability of their lenders.
• Contingencies: Fewer contingencies typically means there’s a lower likelihood for delays or complications. Common examples of contingencies include inspections, appraisals and the sale of the buyer’s current home.
• Closing Timeline: Some buyers may be more flexible with their closing timelines than others. Most sellers find it advantageous to find a buyer whose timeline aligns with their own. A buyer who requires a quick close or extended occupancy might not be ideal for your plans.

Each home seller is in a unique situation depending on their financial needs and relocation timelines. As a seller, you need to balance the value of an offer against these factors to determine the ideal path that aligns with your preferences. 

Evaluating Each Home Shopper’s Financial Strength

If the financing method and timeline are important considerations for you, it’s likely worth your time to evaluate each buyer’s financial strength. Home sellers should take into account:

• Proof of Funds: If you receive a cash offer, it’s important to request documentation so you can confirm the prospective buyer’s ability to pay.
• Loan Type: If you receive offers from individuals who will finance the home purchase, consider the types of loans they are using. Conventional loans have fewer restrictions compared to government-backed loans like FHA or VA loans. Consider how their loans could influence the sale process.
• Size of Down Payment: A larger down payment may indicate a buyer’s commitment to finalizing the sale quickly and can reduce the likelihood of financing issues.

The Role of Contingencies When Selecting an Offer

Contingencies have the potential to not only derail the initial offer you receive but also the speed with which you’re able to find a new buyer. The level of risk they add to an offer varies depending on the contingency, with some contingencies being more troublesome than others.

Offers without an inspection contingency can potentially be risky for sellers, who must balance the appeal of a clean offer with the protection provided by thorough due diligence.

In a competitive housing market, some buyers may waive the appraisal contingency. This can be beneficial as it reduces the risk of complications caused by an appraisal valuation below the buyer’s offer price.

Sale contingencies can be most problematic for sellers with a tight schedule, since the seller will only purchase the property after they’ve sold their current home. The delay can be unpredictable and depends on how efficiently the buyer sells their own property.

A Buyer Who Aligns With Your Closing Timeline May Be Ideal

Finding a flexible buyer willing to accommodate your desired timeline is typically ideal. You may even be willing to accept a slightly lower offer if it means you can close fast. If you need time to transition to a new home, you might benefit from finding a buyer who will allow you to remain in the property temporarily after closing.

Intangible Considerations

Some sellers, particularly those with an emotional attachment to the property or neighborhood, might appreciate a personal letter that details the buyer’s connection to the property and intentions for its future. You might also prefer to work with a buyer or agent who is courteous and approaches the process professionally, as they are more likely to contribute to a smoother and less stressful transaction.

Having Multiple Offers to Choose From Is a Good Problem for Home Sellers to Have

At 72SOLD, we’re committed to getting our clients multiple offers more quickly than other local real estate professionals. If you’d like to learn more about our process or receive our valuation for your home, please fill out the form on our website.