The current pandemic-induced housing market comprises a significant quantity of house shoppers chasing very few houses for sale available on the market. This means whenever you put your home under a listing agent, you’re going to receive multiple offers from so many buyers looking for homes. Receiving multiple offers on your home is incredible. In a multiple-offers scenario, your goal as a home buyer is to choose the best deal after all the considerations. However, how do you ensure that you pick the best deal of all without missing out on a better one?
When choosing from several offers, price is not the only thing you should consider. It’s not all about the highest bidder. Together with your realtor, you must figure out several other concerns as listed below:
- Understand what you want.
Before picking any offer, first, ensure you understand what you want from the transaction. Understand whether you have a set timeline or if you just want a quick transaction. Understanding your wants and communicating that to your realtor plays a significant role in identifying the right offer from the multiple offers available.
When your realtor understands what you want, they can get to work knowing what to expect from the process. Also, consider taking some time with your realtor to review procedures and set what you expect in advance to enhance a quick assessment of the offers as they pour in. - Understand what the buyer wants.
After understanding your wants, it’s crucial to understand what the buyer wants in the process to ensure they align. Under the buyer’s wants, you should consider the buyer’s timeline. Check to see if the date they intend to close aligns with the date you wish to move out. If the timelines don’t align, check if the buyer is flexible on timing in case you have a specific timeline you want to follow based upon the purchase of your next home, a job transfer, or another event.
Also, consider the expiry time of the deal. In some cases, the deal may have an expiry date set by the buyer. The expiry date can indicate when the buyer is looking to seal the deal and relocate. - Certainty of the deal.
As soon as you’ve aligned the deal with the timeline, next is to consider the certainty of the deal. Is it an all-cash deal or an externally-financed deal? An all-cash deal takes less time and involves fewer risks making them so enticing. All-cash deals feature a higher certainty level but come at lower price tags. Considering your objectives, you have to figure that out. - Buyer qualification.
In a case where the buyer cannot afford an all-cash deal, consider how economically safe and secure the buyer is. Some of the aspects that can help you guarantee the buyer’s economic qualification include; how much they are putting as a down payment and if they’ve been preapproved for a loan.
Usually, a substantial down payment indicates the buyer’s monetary stability. A deposit between 20-50% is a strong indication that should guarantee the buyer’s qualification. Conversely, being preapproved for a loan is a basic requirement in the current competitive markets. Pre-approving may not guarantee funding, but it’s a massive indicator of the buyer’s preparedness and ability to purchase a home. - Price
Considering the offer prices is quite apparent. But wait, there are several other extra aspects you ought to consider when assessing offer prices since the main objective is to make a profit. One thing you should check is if the buyer is offering to pay for the closing expenses. Usually, both the buyer and the seller are supposed to pay a part of the closing costs. But in a competitive market, buyers strive to stand out by offering to pay more than their normal share.
Don’t allow yourself to settle for less when the market is a seller’s market. Carefully account for all the aspects highlighted above to get yourself the best deal of all.
Work cited.
https://www.firstteam.com/multiple-offers-on-your-home-14-concerns-you-must-address-with-your-realtor/.
