Since there are not too many sellers in the market right now, you may attract a lot of buyers when putting your house up for sale. Of course, this is great, isn’t it? Having to choose between a plethora of buyers and picking the one that pays the highest price is a dream for every seller, but it’s not that simple.
Even when a potential buyer opts for professional , they consider many factors, not just the price. So, if you think you will close the deal with the highest bidding, you’re not right. You need to take into account other factors as well to help make your house-selling process a breeze.
Therefore, we’ll share five effective tips with you in selecting between multiple offers on your house to prevent any loss or unnecessary stress to you.
1. Get in Touch With an Expert Real Estate Agent
Trying to sell your house without any professional help can cost you your time, money, and peace. Although many house sellers try selling their house themselves, as they think it’s as simple as locating a buyer, receiving the amount, and handing over documents and keys.
In reality, you need to consider so many other perspectives as well, like financing, contingencies, and timelines, which an expert real estate agent will do on your behalf while keeping in mind your best interest.
An experienced real estate agent will ask these questions from a potential buyer:
- What is their requested closing date?
- What amount will be deposited as escrow?
- What type of loan is it?
- Are the dates of contingencies flexible?
- How much of the purchase price is the loan?
- Have they attached all the required disclosures?
You see, it’s not only about picking the highest bidder, but other aspects also need to be taken into consideration. However, make sure you work with a reliable and experienced real estate agent by researching and interviewing them, so they can offer you the best services possible.
2. Consider Contingencies
A buyer may have certain conditions that need to be fulfilled in order to close the deal. If they are not, they will simply back out of the deal. Of course, if this happens, it will mean that you have wasted a lot of time selling your house.
Generally, buyers with a lot of contingencies are not serious buyers, and it can even be a red flag for you as they may simply end up canceling the deal.
Therefore, it’s important for you to consider the contingencies that a buyer may have, such as passing a home inspection, getting approval for a mortgage, etc. The fewer the conditions, the better.
In this process, your real estate agent will also help and consider the contingencies a buyer has. If a buyer has a few contingencies, this increases your chances of closing the deal quickly. This may be essential for sellers who want to quickly sell their property for quick funds.
3. Consider How the Buyer Will Pay for It
There’s no doubt that a buyer with the highest bid value will be the most attractive one out of all, but you also need to consider how they will be paying for it, as it’s equally important.
They can promise to pay you the highest selling price, but if they can’t pay it properly, this can be a bigger problem for you. Here’s what you need to consider:
- Loan status – Make sure your potential buyer is preapproved, not prequalified, as this means that their finances, such as income, assets, and credit, have been assessed by a lender. This means that there will be no difficulties or delays during payment.
- Current housing situation – If the buyer is in the process of selling their house before they can purchase yours, there’s a risk of delay in closing the deal. You should consider this contingency as well.
- Down payment – A bigger down payment is usually better, as the buyer doesn’t have to rely on a loan to finance their purchase. However, you must look at their bank statement for proof of funds.
- Bridging an appraisal gap – If your buyer is buying the house on mortgage, the lender will professionally appraise it to ensure it qualifies for appropriate collateral. In case your house is appraised very low, you should ask your potential buyer in advance how they will bridge the appraisal gap.
- Legit all-cash offer – Getting an all-cash offer is almost every seller’s dream. If you somehow get an all-cash offer, you must confirm if it’s legit. In this process, your real estate agent will be a great help too.
4. Review Buyer Extras
When you have received several bids from buyers that are similar in terms of contingencies, payment methods, and price, you can look at the “extras” they are willing to offer you.
For example, a buyer may want to outbid another bidder by offering an increased selling price. In addition, they may want to pay some portion of your closing costs, such as excise tax, prorated property taxes, and realtor commissions, to stand out among the rest of the buyers.
5. Be Ready to Negotiate
Having to pick a buyer from so many options will put you in a great position to negotiate better terms with potential buyers. This will put the final game in your hands, and whoever accepts your conditions, you can quickly sell your house to them.
For this, your real estate agent will step in and consider all the factors that can help you get an even better offer depending on your market.
You can start off by negotiating the closing timeline. Whether you want to sell your house quickly as you need funds fast or more time while you look for a new house, you can put forward your terms.
You can also negotiate the sale price further by asking buyers what the best and final sales price they are willing to offer is. Again, your agent will know better if this is the right thing to do based on your market.
Last but not least, negotiating closing costs or to waive certain contingencies may also help you save lots of money and stress. Your agent can talk to buyers on your behalf to help you bring the best offer for your house.