How To Handle Multiple Offers On Your House
Residential real estatein Nashville has definitely changed it's pace. We are officially out of the brackish real estate waters and instead, flowing down a river that seems to be getting stronger. In fact, homes here in Nashville are selling like pancakes! – quite a shift from just a few short years ago when houses would sit on the market for months at a time. However, now that it is such a seller’s market, a lot of buyers are finding that not only are homes going under contract within days of being listed, they are also getting multiple offers, some to the extent that unless buyers offer full price or higher, chances are the house will get yanked right from under them. So if you are planning on selling your Nashville home expect a possible tug-of-war over your house. Here is some advice that can help prepare you on how to handle multiple offers.
Inform Each Buyer You Are Getting Multiple Offers: It is important for buyers to know this as it will effect the price and terms that they offer - often leading into a bidding war which in turn can increase your final sales price. You should also set a deadline and ask each buyer to submit their highest and best offer in writing with their pre-approval letter from a lender.
Inform Each Buyer You Will Review All Offers With Your Attorney: This will allow you more time to thoroughly evaluate each offer and determine which buyers are the most serious and most viable. Think about the needs of each buyer and DO NOT begin negotiating with more than one buyer at a time. Negotiate first with the buyer who made the strongest, most qualified, and most advantageous offer.
Respond To Each Offer Punctually: Although it is important to take your time evaluating each offer scrupulously, you don’t want to wait too long to respond. Make sure they know you at least received their offer and will get back to them, then respond/counter accordingly. Determined buyers will only wait so long before moving on to other properties, and in some cases they put in multiple offers on other properties. If this is the case, taking your time to respond may cause you to lose the deal if another seller responds quicker with reasonable terms. You don’t want to lose a sale due to a sluggish response.
Accept The Offer That Best Suits Your Needs: When you submit a counteroffer be sure to negotiate the fine details. Try not too make things too complicated as you will likely end up regretting it in the long run. Being under contract and going through all of the meticulous steps can be worrisome and stressful. Although having the quickest closing date is highly desirable you need to be realistic about the timeframe you are comfortable with.
Inform Other Buyers That You’ve Accepted An Offer: Always be professional throughout the duration of the process of multiple offers. Let other buyers know that you’ve accepted an alternate offer and DO NOT disclose any of the terms of the offer you accepted. There is always a possibility that you can fall out of contract and this can jeopardize any subsequent offers. Ask all buyers if they would like you to keep their offer as a back up in case your contract falls through.
Reference: MNS Real Estate
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