There’s no doubt that homeowners are faring well in the current housing market. Because of a shortage of homes for sale, we remain in a seller’s market. Homes that are located in desirable areas remain in high demand. For many sellers, especially those whose home are listed in the range of $400,000 and under, this means receiving multiple offers soon after their property goes on the market.
But when you’re selling your home and an offer comes in, how do you know whether to accept or reject it? And what if you get more than one offer at the same time – how do you decide which one to pick?
In this short guide, we’ll go over a few of the most important things that you need to know when it comes to evaluating offers on your home and being confident that you’re choosing the right one.
Understand Your Number One Priority
People choose to sell their homes for a variety of reasons. Some are looking to upsize, while others are ready to downsize. Then there are others who are relocating out of the area, while a few may be selling off property in a divorce or estate sale. But no matter the reasons, every seller has a number one priority when it comes to deciding which offer to accept.
For most people, the list of priorities boils down to two common themes: they’re either in no rush to sell and want to get the most money possible for their home, or they’re eager to move and are willing to accept a little less for a quick, hassle-free transaction. You may feel like both of these apply to you, but there’s a good chance you lean towards one a little more heavily than the other.
Examine the Offer Specifics
While contracts are typically standardized, there are numerous ways that a buyer can frame an offer. When the contracts begin to come in, your Realtor will go over the details and help you understand all of the individual terms and conditions.
There are, however, some basic things you should watch for that will apply to just about every offer:
- How close is the price to what you’re asking or truly hoping for?
- Is it a cash offer, or does the buyer require financing?
- If it’s being financed, how much of a down-payment are they contributing?
- Are they asking for any concessions?
- Does the deal require you to cover closing costs?
- What contingencies, if any, are they asking for?
Dealing with Multiple Offers
If you are lucky enough to receive more than one offer on your home at the same time, you’re then faced with an entirely new dilemma – deciding which contract to accept.
The very first step is to examine each of the offers in accordance with all of the specifics that we just went over. Dissect the contracts line-by-line and take note of all of the differences. You can then make an informed decision to accept one of the offers, reject them all, or ask some of the buyers to re-submit their highest and best offers.
Tips for Attracting Great Offers
Make simple improvements which help your home come across as charming and appealing to would-be buyers. Take the time to clean up and get rid of accumulated junk and clutter, add a fresh coat of paint where it’s needed, and focus on the most high-return rooms in your home like the kitchen and bathrooms.
Know what types of buyers are looking in your area and stage your home appropriately. Do you expect to receive the most interest from young professionals looking for somewhere with a convenient home office? Or perhaps families are flocking to your community for its great schools? If so, that office may be better off presented as an extra bedroom instead.
If you expect your home to generate a significant amount of interest as soon as it hits the market, you can ask your Realtor to let all prospective buyers know that there will be a holding period on all offers for the first few days that the listing is live. This gives you time to generate as much attention as possible while also being able to look at each contract in greater depth before making your decision.
It’s a Seller’s Market
Much to the delight of homeowners all across South Florida, this is a great time to sell. After years of turmoil in the markets – especially in the Sunshine State – this current upswing is eagerly welcomed by property owners who may have wanted to sell a few years back but weren’t able to for any number of reasons.
With the present seller’s market comes a problem, albeit not a bad one to have: the responsibility to decide which offer to choose. But thanks to this helpful guide, and with the assistance of an experienced Realtor, you’ll be well on your way to confidently choosing the best offer on your home.
If you’re thinking about selling in the near future, I’d like to be your Realtor. Let me begin by providing you with a customized home valuation, at absolutely no charge.
If you’d like to work together to get the best price for your home, please give me a call today.