Multiple offers – It’s quite possibly the most exciting thing that can happen in the process of selling your home and also one of the most stressful. Handling this opportunity successfully is vital to maximizing your home’s value.
Our goal when we price and list a property is to help the homeowner get as much for the home as possible while meeting their other priorities (timing, ability to show and prepare, minimal distractions to their day-to-day lifestyle). The best way to accomplish this goal is to receive multiple offers on the home.
This year approximately 10-15% of the properties we’ve marketed for sale received multiple offers. Every one of those homes either successfully closed or is in the process of closing. So how do you receive and handle multiple offers on your home?
It starts with the pricing and preparation. This is not new so I’ll keep it simple.
- Follow the guidelines and advice your agent is providing.
- Clean – Make sure you wash the windows and clean out all the cabinets. These are the most overlooked items.
- Stage – De-personalize and remove as much of your personal decor and photos as possible. You are getting ready to move anyways!
- Prepare – Stand in front of your house and be honest about the flaws. Repaint the porch, straighten the mailbox, get fresh mulch and flowers as needed. It really does work!
So now you are prepared and the multiple offers come in. What happens? Typically, the situation will play out as follows;
- You have a handful of showings in the first few days on the market and receive an offer.
- Your agent reviews the offer with you to make a decision if you want to respond or check with the other showing agents. Unless the offer is outstanding you would typically check with the other showings.
- If one of the other agents has a client looking to make an offer we would invite them to make their “highest and best” offer. This means they would be made aware of the existing offer (but not the specific details, such as price) and invited to bring their most attractive offer to buy the home.
- If there are other showing agents with interested clients you’d pursue the same strategy with them by updating the Realtor that an offer is in-hand but they are invited to bring their “highest and best” offer.
- After all offers are in the home owner would review the multiple offers and choose the one with the best terms. Price is obviously a major component but don’t forget to review closing dates, inspection contingencies, financing vs. cash, etc. The best offer is chosen, the contract signed and returned to the buyers.
- The chance exists that none of the offers would be acceptable to the seller but it is highly unlikely. Receiving multiple offers is a great gauge of the market value of the home. If you feel that your home is worth more than what you are receiving in a multiple offer situation I’d suggest having a frank conversation with your Realtor to make sure you have realistic expectations.
I almost forgot step 7, celebrate!
Questions? Feel free to email or call. We are here to help!
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