So you’ve listed your home on the market, and you have multiple offers in front of you. Congratulations! This part of the process is equal parts exciting and stressful, so today I’d like to go over a few points that will not only make your life easier, but will also ensure you’re getting the best possible price for your home:
1. Stay organized. In our market, it’s not uncommon to see 14, 15, or 16 offers on a home.
Taking a haphazard approach will only add stress, so your organization skills really need to come into play. Typically, we’ll put together a nicely organized spreadsheet that itemizes each offer and its corresponding terms. Remember that price isn’t the only negotiable term: You can negotiate on the closing date, whether you’ll allow for an inspection or any other waivable contingencies.
2. Creating a sense of urgency among buyers.
We can reasonably assume buyers know your home is a hot commodity, especially given that the market is humming with activity and interest rates have recently dropped. It doesn’t hurt to remind them of that, though, and to set deadlines for when you expect responses. Keep them honest and, if need be, emphasize that there’s other interest in your property. Treat it like a game of poker: Whoever has the least amount of attachment is oftentimes the winner!
3. Get as much information out of the buyers as possible.
The more information we have about the buyer and their motivations for wanting your home, the more leverage we have in negotiations.
4. Speak directly with a loan officer for the buyers.
Oftentimes, when we ask the lender specific questions about a buyer, we can uncover information about that particular buyer’s level of interest as well as how strongly qualified they are for you and your home. In other words, does their offer carry the most optimal terms and price?
5. Keep backup offers on hand.
An analogy comes to mind: Remember in your high school days where you wanted the quarterback or head cheerleader to be your date for the big dance, but you had a backup in case they declined your offer? Likewise, it’s important not to burn bridges with your second- or third-best offers in the event that your first choice falls through for some reason or another. Like the other four points on this list, this will help us get the best possible terms and price for you.
If you have any questions about how to best negotiate in a multiple-offer situation as a seller or you have questions about real estate in general, give us a call at 215-350-4125. We hope to hear from you soon!