How to Navigate a Multiple-Offer Scenario as a Seller

06/16/21  |  Carla Umlauf

To help you prepare for a possible multiple-offer situation, we’ve compiled some tips as you continue on your home-selling journey.

How to choose the best offers for your home when you have more than one interested buyer 

Have you listed your Rollingwood real estate for sale, or do you plan on doing so in the near future? There is a strong seller’s market in Austin and the surrounding areas, meaning there are more prospective buyers of Rollingwood homes than there is inventory. This is exceptionally good news for sellers, as they will likely get multiple offers on their homes and be able to choose the best one.
However, it’s important to know that the best offer is not always the highest one; it’s just one determining factor of a good offer. To help you prepare for a possible multiple-offer situation, we’ve compiled some tips as you continue on your home-selling journey.

Understand Your Selling Priorities

Before you even start considering offers, you need to talk with your Rollingwood real estate agent about why you are selling your home. For example, if you have taken a job in a new city or need to move because you can no longer afford your mortgage, speed will be one of your top priorities. If you need a certain amount of equity out of your current house in order to buy your dream home, a high offer will take priority.
Your Rollingwood real estate agent will keep the reason you are selling your home confidential if you want them to, so you don’t need to worry about personal details being shared with others. When you and your agent are both clear on what your top priorities are, it will be easier to choose offers that meet your needs.

Review Contingencies 

In a hot seller’s market, you may be lucky enough to receive multiple offers with no contingencies. However, it’s important to know what common contingencies are in case your offers contain them.

  • Home inspection contingency. This contingency states that the buyer can back out of the deal or adjust their offer on Rollingwood homes if the home inspection turns up repairs or other issues with your home.
  • Buyer financing contingency. A buyer financing contingency gives the buyer time to obtain financing to purchase your home. If they cannot obtain financing, the deal will not go through.
  • Property appraisal contingency. If your buyer is obtaining a loan to buy Rollingwood real estate, the lender will require an appraisal to ensure the home is worth what the buyer is paying for it. With this contingency, the buyer can adjust his or her offer or withdraw it when the appraisal comes.
  • Home sale contingency. If buyers are attempting to buy and sell Rollingwood homes simultaneously, they may include a contingency that they will not buy your home until theirs successfully sells.
Review all contingencies with your real estate agent, and talk about the possible risks involved with accepting an offer with certain contingencies. For example, if you accept an offer with a home sale contingency, it could prolong the sale of your home for weeks or even months.

Narrow Down the Offers

It’s not out of the question that you will get five or more offers on your Rollingwood real estate in this type of market. To ensure you don’t get overwhelmed, you need to narrow it down to the top two or three before you consider other offers.
To do this, first, consider whether or not each prospective buyer is pre-approved by a mortgage lender. Those offers by pre-approved buyers should rank higher than those that are not, as those who are not pre-approved may not be able to get financing.
You also need to consider whether offers are in cash (meaning they are not contingent on the buyer getting a loan), as these transactions will usually make for a quicker sale. Finally, look at any contingencies and determine how they will affect the ultimate transaction.

Take Emotion Out of the Equation

Selling Rollingwood real estate that you’ve owned for years and made memories in can be a very emotional process. Though it may be difficult, it’s important to take these emotions off the table as much as possible and treat each offer like what it is: a business deal. When you are emotionally attached to offers or certain buyers, you won’t do yourself or your bank account any favors.
In a multiple-offer situation, buyers may try to appeal to your emotions by writing you a personal letter. While these can offer some insight into how they will care for your home after they purchase it, they should not elevate a weak offer into a strong one.
The best thing you can do to control emotions and look at offers with an unbiased eye is to have your Rollingwood real estate agent go through each offer with you. He or she can help you identify which offers achieve your selling objectives and leave you in the best position to move on to your next home.

Know-How to Identify a Strong Offer

Knowing how to spot a strong offer will help you narrow down choices and ultimately choose the best. According to financial guru Dave Ramsey, there are three ingredients that go into a strong home offer. They are:
1. The buyer’s financial strength. This includes if he or she is pre-approved if his or her offer is cash and the size of his or her down payment.
2. The buyer’s concessions. Strong offers have few (if any) contingencies and do not ask for special favors like retaining appliances.
3. The buyer’s flexibility. Strong offers come from buyers who are willing to be flexible on issues such as closing dates to make the selling process easier for you.
If you get an offer that features all three of these ingredients and is at or above your asking price, you know you’ve got a strong contender.
If you’re ready to sell your home, be prepared for multiple offers, and having a plan in place to choose the best will increase your chances of success. Reach out to one of the experienced Rollingwood real estate agents at Umlauf Properties Group to help you through the process.

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