How to Handle Multiple Real Estate Offers
There was a time when getting multiple real estate offers in Memphis was on par with your odds of finding a unicorn. But the market has changed. Boy, has it changed.
Now, we find ourselves in the position of counseling our seller clients on how to handle a multiple offer situation.
First things first
Do you want to review offers on a first come first served basis or do you want to allow your property a little time on the market (say 5-10 days) before you’ll review? This is a conversation you need to have with your agent before you are faced with the dilemma of an offer in hand and another coming your way. There’s nothing like the feeling that you’ve left money on the table because you made a hasty decision, so have a plan.
What are your options?
Choose the highest price. This is the obvious choice, isn’t it? You want the best price possible for your house and it makes sense that the buyer offering the highest price would be the correct choice. But there are other things to consider as well.
Choose the best terms. It may be that a buyer is offering the highest price, but needs assistance with closing costs, which can be an indication that they are short on cash. If another offer has a lower price, but no assistance is needed and a higher down payment or deposit offered, those terms may outweigh the price.
Choose the shortest closing date. If you need to move and move fast, it may be worth your while to accept a little lower price in exchange for not having to make another mortgage payment.
Choose the best qualified loan applicant (or the cash buyer). A pre-approved buyer is making a much stronger offer than simply a pre-qualified buyer or one who hasn’t taken the time to arrange for financing at all. And, of course, a cash offer is the ideal.
Choose to call for highest and best offers from all buyers. Know that you’ll run the risk of losing some buyers that may not be interested in participating in a bidding war.
What’s most important to you?
Is it terms or is it price? Only you know the answer to that question. In the event of multiple offers, you’ll need to have a serious conversation with your agent about what works best for you.
In a multiple offer situation, it’s important to treat each buyer fairly. Once you’ve made a decision on how you are moving forward, your agent should respond to all offers promptly.
Need a plan for selling your Memphis home in this market? Call us today at 901.230.2610 and we’ll be happy to help you navigate through the current real estate maze.
By and photo credit: crescentcityliving.com