Selling your home is a process that will bring up many questions, ranging from, “What is that weird smell in the basement?” to “How do I get my home appraised?” One of the questions we all hope to consider is “Which offer should I accept?” It would be a good problem to have if you are making this decision! It means your home is so appealing that multiple buyers are bidding to take the sale. Of course, price is something to consider. An offer is only appealing to you, as a seller, if it compensates you for what your home is worth. Despite the importance of the offer’s amount, there are other things that may be important to factor into this decision.
Let’s say the offers you are considering are comparable: no one stands out as a clear monetary winner. How do you choose? One thing to consider is what the sellers have offered regarding the closing and down payment. If you’re looking for the process to go quickly, you might think about choosing a seller who has a relatively large down payment ready and is guaranteeing a swift closing.
What else can a buyer do to convince you? If a potential buyer knows he/she is entering a bidding war and does not have the ability to significantly compete with other offers, the buyer will often add to their offer with other negotiables. That could include waving some contingencies, or not making their offer contingent on an eventual inspection or appraisal. Additionally, the buyers may offer to be flexible in the closing costs and dates, making your moving complications less daunting.
It might be worth exploring whether or not your emotional connection with your home can factor in its worth. Some buyers will write to the home seller and tell them about their excitement for the future of the house and growing in it with family. If you have a sentimental connection to your house and want to make sure it is put in the hands of a person who will proudly take care of it, you may want to choose the buyer who has taken the time to write a nice letter.
Lastly, you will want to consider the financial stability of buyers when considering multiple offers. You should know where the money offered is coming from and be sure that it’s a viable offer before accepting something based on its worth alone. A high offer is not necessarily better than a low offer if the buyer cannot come up with the money he/she has promised. Be sure to check which buyers have obtained mortgage pre-approvals!
We wish you the best in your house-selling endeavors and hope you will use all the tools at your disposal to make the right sale. Leave a comment if you have advice for others or further questions about deciding between multiple home offers.