Selling your home is an exciting feeling, especially when you receive multiple offers. Of course, any number of offers are beneficial, but many sellers don’t know which steps to take next. If two or more buyers submit attractive offers, you’ll need to evaluate more than the amount itself. When it comes to selling your home, price isn’t everything. We recommend that all sellers learn how to compare multiple competing offers to determine which is the best for their unique needs.
While it may seem like there’s no such thing as too many offers, receiving multiple offers can be overwhelming. Naturally, the highest amounts will immediately catch your attention — and perhaps cause the lower amounts to fall to the wayside. Before you choose a buyer based on the highest offer alone, we suggest that you also weigh the following considerations in your decision-making process.
- Pre-Approvals
When fielding multiple offers, you should pay attention to buyers who are already pre-approved for a loan. Pre-approval for a mortgage loan removes an element of uncertainty that exists when a buyer waits to apply for funding. - Contingencies
Although some buyers will submit high-priced offers, these amounts may also come with contingencies. Some contingencies may prevent you from successfully selling your home, as they legally allow the buyer to walk away from the sale penalty-free if their contingencies are not met. Offers with the fewest contingencies are typically more preferable, even if the offer price isn’t the highest. - Closing Timeframe
If you need a quick close or additional time after closing to vacate the property, you may desire a buyer who is willing to cater to your needs. In contrast, if a buyer insists on a timetable that does not work with your schedule, a rushed close may be more expensive in the long run. - Other Reasonable Offers
Even if you believe you’ve identified the most attractive offer, you must acknowledge other reasonable offers. In some cases, you may accept an offer only for negotiations to fall apart before the transaction is finalized. When your preferred buyer is no longer an option, you’ll want to know which other reasonable offers will provide you with the next best agreement. - Agent Advice
Remember, you’re not alone in selling your home. Your agent or broker has your best interest at heart. When considering multiple offers, ask your agent for advice. They’ll objectively help you assess each offer to identify which has the most benefits and fewest drawbacks.
When you’re selling your home, you need to be prepared to field multiple offers from qualified buyers. While many of these amounts will be attractive, there are other factors to consider besides the price itself. Evaluate these offers using the suggestions above and consult your agent for advice on choosing the offer that suits your needs.
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