You Received Multiple Offers, Now What?

By
Real Estate Agent with Jeff Fritzson Real Estate, Ebby Halliday Realtors 0629874

In Frisco Texas multiple offers for homes under $500K have become much more common on properly represented homes. Two weeks ago a home I listed received several excellent offers. I sat down with my sellers and walked through each offer. There are certain things in a contract that may take on different priorities for my sellers than for me.

What's Important

I think it is important to ask questions and listen when you first win the listing. It is often a good time to review their goals before looking at all the offers to make sure they tell you their priorities. Rather than reliving one particular event, lets look at the many things that are negotiable in the promulgated Texas contract.

Negotiating a Contract

Variables

Without even looking at addendum including contingencies, there are more than 20 variables that are negotiable in a contract. The exact number may vary between contracts depending on how they are written but typically at least 20. Many people think of price and earnest money. While these are important understanding that the offer price and the actual net price being offered can be substantially different.  Determining which out of these 20 plus variables are important to your clients or if you are a FSBO to you can be challenging.

Once you have the contract, you see things like sale price, exclusions, earnest money, title company, title policy, financing, survey date and responsibility, objections, disclosure, service contract, option time and money, closing date, settlement charges, etc... As a seller's agent, understanding what is important to your client and presenting the offers in priority based on your client's needs can be challenging. This is where you have to be able to explain what is driving your recommendation as to one offer being stronger than another. To digress just a little bit, as a buyer's agent it is just as important to understand how to craft an offer that is stronger than the rest.

Quick Summary

This is not an instructional post on how to evaluate offers but from MY PERSPECTIVE, the focus has to be on how do I help my clients get their requirements met and make sure we close. If you don't close, you don't get anything. With that in mind, a quick summary of how I go about looking at offers includes: review the pre-approval letter and find out what financial institution  the buyer is using. This is very important. Of course cash really is king if they have proof of funds, but when working with a lender, financial institutions that keep everything under one roof such as underwriting, have a more powerful rating than a big bank. More money down is stronger than less. More option money is better than more earnest money. My preferred title and lenders are stronger than others. Everything the buyer selects that they pay for is better than my seller's paying.

When you are ready to buy a sell a home, contact me. If you decide to work with me, you will learn what my other clients know—Your Success is My Focus. If you are not looking in North Texas, don't be shy, contact me and I will help you find a great Realtor in your area who will work with you.

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Topic:
Home Selling
Location:
Texas Collin County Frisco
Groups:
Realtors®
Real Estate Rookie
Frisco Texas Real Estate
Local Expert
Bananatude
Tags:
fsbo
home selling
multiple offers

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Rainmaker
2,230,293
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Jeff. Great post and one that should have the attention of many in the real estate business. You shared good sense and wisdom.

Make it a great weekend!

Apr 25, 2014 10:51 PM #1
Rainmaker
456,015
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

I use similar criteria as you do to evaluate multiple offer situations. Sometimes there are hints in what the agent presenting says. I recently had a situation where I KNEW the buyer was going to be a problem on home inspection, and sure enough...the clue came from the agent!

Apr 25, 2014 11:01 PM #2
Rainmaker
2,889,496
Richard Weeks
Dallas, TX
REALTOR®, Broker

Good post, thanks for sharing.  Buyer agents need to educate and set expectations for their clients

Apr 25, 2014 11:35 PM #3
Rainmaker
1,013,071
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Highest and best can mean different things to different people.  A few thousand dollars difference in price can mean very little if there is uncertainty about where the buyer can and will actually close the deal.

Apr 26, 2014 12:45 AM #4
Rainmaker
2,762,496
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Jeff, This is the way a true professional evaluates offers. I create a spread sheet when I have multiple offers ... which is almost always these days. The devil is in the details. There is more to an offer than price. Great post.

Apr 26, 2014 01:50 AM #5
Rainer
96,912
Jeff Fritzson: Frisco Real Estate Pro
Jeff Fritzson Real Estate, Ebby Halliday Realtors - Frisco, TX
Your Success is My Focus!

Hi Joe - thank you for your coments. I always appreciate your kind words.

Hi Shannon- you must have the same buyer as I had on my last transaction.

Thanks for joining in the conversation Richard. Your time and comments are greatly appreciated.

Hello Rob - very wise words. Price is not the only consideration.

Hi Kathleen - Excel can come in handy in so many ways whither it be as a neogitation worksheet or an offer worksheet. Those pesky details can easily be presented and explained.

Apr 27, 2014 01:48 AM #6
Rainmaker
303,033
Kate McQueen
CB&A Realtors - Cypress, TX
Tailored service for your real estate needs!

Multiple offers are common in the Houston Bay Area as well.  As an agent, it's not only price that is a consideration but also TERMS and buyers' ability to finance or pay cash.

May 07, 2014 01:59 AM #7
Rainmaker
1,179,229
Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Jeff, this just makes total sense, having a system when reviewing multiple offers helps a lot. 

Jan 22, 2015 12:31 AM #8
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Rainer
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Jeff Fritzson: Frisco Real Estate Pro

Your Success is My Focus!
Your success is all that matters. Contact me.
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