You’ve put your house on the market. You had a great open house. And now you’ve gotten an offer – followed by three more.
If you’re selling your home, you may find yourself in the position of having to choose between different offers. While this is often an enviable position to be in – who doesn’t dream of a bidding war? – it also means that at some point you’ll have to choose between them.
If you’re wondering how to decide between competing offers for your home, here are some tips to make choosing easier.
All offers are negotiable
The first thing to remember when evaluating any offer for your home is that all offers are negotiable. It’s part of the process for the seller and potential buyer to go back and forth until a mutually desirable agreement is made. If you receive an offer that is interesting but not quite what you had hoped for, you can make a counteroffer asking for modifications.
Define your priorities
Before you even begin entertaining any offers, you must first decide what your priorities are for your home sale. On which terms are you willing to negotiate? Which terms, if not fulfilled, are deal breakers? Do you need to sell quickly, or do you have time to wait for a better offer? Take the time to clearly set your goals so you end up satisfied with the process in the end.
Establish a process with your real estate agent
If you or your agent thinks that your home will receive multiple offers, it’s a good idea to have a plan in place before you begin receiving those offers. Decide on a timeframe that you will accept offers, and let potential buyers know there is a clear deadline. Your agent has probably gone through this process before and will likely already have an established way of dealing with multiple offers – let their expertise guide you here. They can discuss with you how the review process will take place, and will likely be open to any modifications you may want to make.
Analyze each offer
Each offer you receive on your home needs to be carefully scrutinized before making a decision. While it may be tempting to go with the buyer offering the highest price, there are other considerations to bear in mind. Does the buyer want you to make any repairs? Are they asking for appliances to be included in the purchase price? Are they offering enough earnest money to deposit for the down payment? Is the buyer pre-approved for a mortgage? Do they want you to cover closing costs? Does their closing date align with your timeline? For each of these critical points, you’ll want to ask yourself what you’re willing to compromise on and what is a deal breaker.
While receiving multiple offers on your home can be very exciting, it’s important to keep in mind the big picture and have a plan in place for what to do if you need to decide between two or more potential buyers. With a little forethought and a set of clearly defined goals, you’ll have an easier time making that final call.