Tuesday, August 22, 2017
5 Tips to Successfully Navigating Multiple Offers
1. Don't take the first offer you get. Set a date to review offers and ask for the loan preapproval, proof of funds and information about the buyers up front. Usually a week is plenty of time to get the best offers with the most motivated buyers. It can be noted in the listing. This way you don't have buyers and agents panicked to get in and making impulsive decisions that they may regret later.
2. Highest Offer isn't Always the Best. When reviewing offers, consider the type of loans versus cash. While buyers with VA or FHA loans may offer the highest offers, even above the asking price, remember if the appraisal comes in lower than the inflated purchase price, you may have to lower the price to match the appraisal since these buyers don't have a lot of cash reserves. While buyers don't like to show you that they have lot of cash, you will want to look at the cash reserves if they are trying to outbid other buyers. Strong cash offers can be the best. They do not have to have an appraisal contingency and can close quicker.
3. Increased Good Faith Deposit. While the typical good faith deposit is 1%, some buyers are putting down more. However, they don't take any risk of losing any of it, and at the most 3%, unless they back out after releasing all of their contingencies in writing. So the money that a buyer puts down in good faith shows motivation.
4. Shorter Contingencies Time Frames. Look for the shorter contingency time frames. The motivated buyers can definitely shorten up their physical inspection periods. Appraisal can be ordered within the first week. With a full preapproval, loan contingencies can be shorten to 17 days.
5. Other Terms to Consider. While having the sellers moved at the close of escrow is always best, sellers often need more time to close up their old house before moving to the new one. So a buyer may want to consider being open to allowing the seller to remain in the house for a few extra days to move their equity to close up their new home.
For other Home Seller Tips see Home Sellers Don't Burned
Keller Williams Realty