Multiple Offer! Which One is Best?
Stephanie Spann
Realtor? & Entrepreneur - Building relationships by helping people acquire wealth in the form of real estate and adding value by educating them on options as they build a financial legacy for their future.
Your new listing has 5 offers within the first day! Your client is excited and thinks you are the best Realtor in town. In all the excitement your seller tells you they want to accept the highest and best offer right away. This is your opportunity to “stay calm” and educate your client; the highest offer may not be the best offer.
The decision of the list price has been decided upon by you and your client with the consideration of the comparison market analysis you provided before the listing status became active. Looking at the data also gives you a good idea of what the appraisal price will be. When you get the high offer of $5K to $10K over the asking price “wait” do not get too excited.
Review the contract with your client to help them to consider each attribute that can affect their net profit before making a decision. Yes, this is a “seller’s market”, but there are 5 things your client should take into consideration before deciding on the best offer. Let us look at things that should be evaluated before making their decision.
- Price: Is it the price you are looking for or willing to accept?
- Timeline: How long is the Option Period and Closing Date?
- Contingencies: Is the purchase contingent on the sale of another property? Is the property listed for sale? How long has it been on the market?
- Financing: What type of loan does the buyer have and are there any stipulations in the transaction? Today a lot of homebuyers are paying cash, this can easily trump any offer that is being financed.
- Settlement and Other Expenses? Are the buyers asking for help with Closing Cost, Home Warranty, or Title Policy?
It is easy to get caught up in wanting the highest offer for your home, but it is important to consider all aspects of the contract that can affect your client’s net profit to determine if it’s the best offer. According to their needs and goals, the decision is ultimately up to your client. If you are looking to put your home on the market. Let's talk, you can reach me at [email protected] or 817-235-8618.