Low inventory in a hot real estate market is great news for home sellers. It means less competition and generally translates into multiple offers on a home. This is where an experienced real estate agent can guide the seller on how to handle multiple offers to get the best price, terms, etc at closing. Remember, the key isn’t just getting a great offer – it’s getting the deal to close!
Here are a few things to consider with multiple offers:
- Cash buyer vs. loan – A cash buyer is generally preferred since cash shortens the closing period. It also means the buyer is not dependent on an appraisal.
- Counteroffer – One option with multiple offers is to ask for a “best offer” from all interested buyers, giving them 24 hours to submit their highest and best offer. Or a seller could counter with one buyer and put all other offers on hold until that negotiation is complete. When counter offering, sellers can consider price, closing costs and time frames as negotiable parts of the sale.
- Buyer’s position – Another important consideration is the position that the buyer is in: is there a contingency involved? Are they pre-qualified or pre-approved. Pre-approved means that the buyer knows how much house they can afford and can back up their offer.
- Emotions – Selling a home is emotional. Many home buyers will include personal letters with an offer that touch on all the reasons why the house is the perfect fit for them. It’s not unusual to be swayed by this as a seller. Here are some tips for buyers on how to write a strong letter.
- It may fall through – Even in a hot market with multiple offers, an offer can fall through and not make it to closing. Be patient, be prepared and work with a good agent who can help you with this process.
Are you considering putting your Nashville home on the market? Call DeSelms Real Estate at 615.550.5565 and let one of our experienced REALTORS answer any questions you may have!