Multiple Offers on this Home
Selling your home? You’ve staged your home, made the necessary repairs and after just a week of showings and with multiple offers your home is under contract. With today’s changing market this is a very likely scenario in many areas. And with your home sold you can make plans to move secure that you’re good to go….. Or not….
So let’s back up a bit. When selling your home in areas with low inventory and with buyers anxious to move into your neighborhood you may very well find yourself in a multiple offer situation. Especially is this true if your home is priced attractively, is in good move in condition, and has the features buyers are looking for. So what cautions should you as the seller keep in mind when choosing which offer to accept in multiple offers? Read 5 tips to keep in mind when receiving multiple offers in selling your home:
Each offer will most likely include the offer price, requested seller paid closing costs, request for repairs or other conditions and a prequalification letter. As the seller you may be focused on the bottom line, how much you will net when selling your home. However, there are other factors that should be considered when choosing which offer to accept.
- First, consider the loan. Each prospective buyer should be analyzed as to whether they have their finances in order and if their lender can close in a timely manner. Some factors that impact the loan’s ability to close on time are recent changes to employment, death of a spouse, or other significant changes in the personal lives of the applicant.
- Second, consider contingencies. If the buyer has a home to sell, or they are dependent on their home which is currently under contract to close before they can purchase your home, there is the potential for a delay if something goes wrong.
- Third, consider the appraisal. The lender’s bank will request an appraisal to make sure the home is actually worth the negotiated sales price. If it doesn’t appraise, you can’t sell your home. Something to keep in mind when choosing which offer to accept, the highest offer is not necessarily the best. And raising the sales price to cover seller paid closing costs may be risky depending on how close the appraisal is expected to be.
- Next, consider repair requests. Lenders do not like to see extensive repairs requested on the offer to purchase or negotiated after the inspection. To avoid problems in underwriting the loan it may be a good idea to either offer seller paid closing costs in lieu of repair items or for you as the seller to go ahead and complete the repairs ahead of closing so that it is not an issue.
- Finally, make sure you have a backup plan in the event closing is delayed. Many of the delays in closing are beyond anyone’s control. However, by making sure your agent and the buyer’s agent are in contact with the lender and the closing attorney on a weekly basis any problems may be quickly identified and just as quickly rectified to avoid a delay in closing.
So if you’re selling your home and anticipating multiple offers be assured that by keeping these 5 tips in mind you will be well on your way to a successful closing!