The market is roaring in Palo Alto and most homes are getting multiple offers. If you are a Personal Representative for a Palo Alto Probate Sale, or a Successor Trustee for a Trust Sale how do you know which is the best offer? How do you choose from the embarrassment of riches, especially if you are not from the area and are not familiar with area?
If you follow these steps you should be fine.
1. If you have an all cash offer with no contingencies that is the highest of all offers. Pick that one.
2. If you have an all cash offer for less than a financed offer it may still be the best, but it may not be.
3. If the financed offer has no appraisal contingency and it is higher than the cash offer you can make an argument that that is a better offer because it is higher. If the buyer is pre-approved and the house does not have to appraise for offered price the risk of the transaction falling through because of of the loan not being approved is small.
4. If there are multiple offers with financing contingencies and appraisal contingencies things get a little more complicated. It is very likely that there will be offers that will over what the appraisal will bear.
5. When Number 4 happens I counter offers by asking the agents what will your client do if the home does not appraise for the value you have offered. This is important because if you have a home worth $800,000 and the buyers have offered $850,000 but subject to appraisal, they may have really just offered $800,000 if the home will not appraise higher. So, what I want to know is what is the buyer going to do if the home does not appraise for what was offered.
6. Take the offer that you feel has the best chance of giving the estate the best realistic price based on what the buyer is capable of doing vs what they have offered to do.
Even in this crazy Palo Alto seller's market, negotiations still matter, and you will not automatically get what you are offered, so hire someone who knows what he or she is doing and get the interests of the estate protected. Also, if the agent you are interviewing does not know what a Personal Representative or a Successor Trustee is, interview someone else for the job.
If you have any questions about selling a home in Trust or Probate in Palo Alto please feel free to contact me.
Keller Williams Realty