Multiple offers for home sellers are present in this current market, as are offer dates. Smart buyers will be putting their best offer forward in their initial offer, and smart buyer agents will be communicating with the listing agent to help with this. With answers to questions like, "When do the Sellers need to move?" buyers can craft an attractive offer with a closing date that matches the Sellers' needs. "Rent-backs" when a seller stays in the home for a few days up to a couple of weeks, is more common in some markets, but I haven't seen that here in San Francisco. My guess is that buyers avoid negotiating this because of our rent control ordinances, but a rent back under 30 days would work as the rent control doesn't kick in until a tenant has been occupying the property for 30 days.
For Sellers the offers will be evaluated by considering; the purchase price, the deposit amount, the timing for the close, and other factors -- such as contingencies of funding -- affecting the likelihood that the deal will close.
In many markets across the US this may not be even a remote factor to consider but in the San Ramon and Contra Costa County of California homes are flying off the market and buyers are finding themselves in a tough competitive situation. We’re seeing lots of information and articles on how buyers can compete with each other during a bidding war or with multiple offers but what about the seller?
How are they to choose over the best offer? Is the highest price really the best offer?
I've been doing a little bit of research on this topic I’m not finding anything from the seller’s perspective. It’s all about buyers and how buyers can compete but sellers may be faced with an interesting situation in which offer to choose. Which offer will provide them the most accurate response to what they’re looking for? Sellers may not want to go with the highest offer but the best overall in terms of contingencies, conditions as well as price.
Here are some factors to consider if you are a seller facing multiple offers.
- Make sure you have a listing agent that knows the current market and knows how to handle multiple offers. The last thing you want is a real estate agent that only brings you the highest offer. It is our ethical and moral obligation to present all offers regardless of the terms to our sellers. As a San Ramon listing agent I specifically make sure that all my sellers know the terms and the conditions of each offer presented to them as well as price and all factors involved.
Price may not always be the deciding factor. Cash offers may be great but if they are connected to multiple contingencies on selling a previous home, financing the new home, neighborhood feasibility or any other addendums and clauses that may cause hangups and delays during the process, it may not be the best option for the seller.
- Homebuyers today may also have an aggressive buyer’s agent that coaches buyers through the process of multiple offers on a home. Buyers can tend to appeal to sellers personal side by writing letters stating the nature and the reason for buying. Families with small children, close to certain school districts, moving for work and similar types of stories may tug at seller’s heartstrings and this may be a great deciding factor on which buyer to choose.
Remember your motivation for selling. If you need to sell quickly you may choose an offer with minimal contingencies, approved financing, and fast closing. If all ducks are in a row and everything lines up, a financed offer may be the best option. The key is to find a listing agent they can help you decipher all the details and nuances of a real estate offer. As a San Ramon listing agent I painstakingly go through every offer to provide you with the key points to help you make an informed decision on which offer to choose. Give me a call today and let’s discuss listing your home anywhere in Contra Costa County, from Pleasanton to Danville and everywhere in between. This is an interesting market and certainly one not to tackle alone.
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