If you are selling a home in today’s tight market you will most likely be faced with a multiple offer situation. Ideally, your agent will have a plan in place for accepting and reviewing offers, and will help you decide which one is the best for your circumstances. Here are some things you will want to consider before making your final decision.
Price: In this market, multiple offers may come in at or above ask. However, the highest offer may not have the most secure financing, or may contain contingencies another offer has waived, or the closing date may not work for you. Look at the offer as a whole, not just the number.
Home inspection and other contingencies: Many buyers are waiving home inspections and appraisal contingencies, and may even waive their mortgage contingency! These offers are far more competitive. Evaluate all offers and contingencies with your agent.
Financing: Make sure the buyer is working with a reputable lender and has a pre-approval (financial docs have been reviewed), versus a pre-qualification (no financial documents reviewed). Make sure the conditions for financing are spelled out clearly (contingencies, commitment date, closing date, etc.)
Emotions: Try to keep your emotions out of it! Do not take feedback about your home personally. If you have several similar offers, you may want to review buyer letters too, but only after you have done your due diligence around the financing and contingency piece. At the end of the day it is a business negotiation, so approach it that way.
If you are currently or soon may be in the market for a home, please reach out to your Fairway loan officer to get pre-approved!