How to Handle Multiple Bids on Your Home?

1. How to Handle Multiple Bids on Your Home If you’re selling your house in a good real estate market, you may be lucky enough to receive multiple offers. If you’re even luckier, you may have a bidding war on your hands. Although it seems like a dream scenario, many sellers don’t know how to handle so many offers. When that happens, it can be difficult to choose the right bid. You want to sell your house quickly, of course, and for a good price. Selling your home is a big step, and you’ve got to weigh all your options carefully. While you may be tempted to go for the highest offer, there are many other factors to consider in the process. Image Source Consider the Price The first thing you will undoubtedly look at is how much someone is willing to pay for your house. The highest bid definitely stands out, but it may not be the best offer there is. Often, buyers get caught up in a bidding war and end up offering much more than they can afford. This means that their ability to pay may rely on a home loan. Sometimes, in order to be approved for one, banks or mortgage lenders may order an appraisal of your property.

2. If you’re asking for more than the market value, the buyer’s loan won’t come through or may fall short. When this happens, it’s important to consider whether or not the buyer can cover the rest of the amount in cash. If not, the deal will fall through and you’ll be left with nothing. A good thing to note is that the lender is usually able to tell your real estate agent if the loan is going to be approved or not. If it doesn’t look promising, you can move to the next highest bid. Consider Closing Periods After the price, the second most important factor is the closing period. How soon is the buyer willing to close the deal? Someone who is paying a little less but willing to move in sooner may be better than someone who needs months to close. This, however, depends entirely on the needs of the individual seller. If you haven’t closed on your new home yet and need more time, then you might be better suited to a buyer who is willing to wait. But if you need to sell your house as quickly as possible, it’s best to go for a buyer who can close within your required time frame. Closing periods can also rely on whether or not the buyer has applied for a loan. The buyer, in that case, has to wait for loan approval, which can take some time. If a buyer is paying solely in cash, then they are likely to close much quicker. This can be quite tricky to navigate. Do you want to wait for a buyer who is willing to pay more? Or would you rather sell to a lower bidder who can close soon? These are all factors that you need to weigh in order to choose the best offer. Compare Contingencies When a buyer has a certain number of stipulations in the offer, these are known as contingencies. These contingencies can make the offer harder to complete. For instance, a buyer may require your property to be appraised for a certain amount, they may need to apply for a home loan, or they may ask for a home inspection. A buyer can even ask that their current home needs to sell before they can buy yours. As a rule of thumb, the fewer the contingencies, the better the offer. These contingencies can cause a great deal of trouble, and slow down the closing process. You need to work with your real estate agent to iron out all these details before proceeding

3. with the sale. A good idea is to make a spreadsheet in which you list down all the offers with their names, bid amounts, and contingencies. This will help you see everything in one place, and make an informed decision. Set Aside Your Emotions Your home is something very personal, and you may have lots of memories attached to it. Selling your home can be an emotional experience, and buyers can sometimes try to take advantage of that. Many buyers send letters, personal notes, and photographs detailing why they would be the perfect family to move into your house. These letters can be quite persuasive and may sway your judgment. Of course, you want someone who’s going to love your house the way you did, but this is a business transaction. You need to set your emotions aside. Sellers can also try to take advantage of the buyer’s desperation to buy a house. You may get greedy and stall the sale in order to get more money out of the buyer. There are some tactics you can use to up the bidding, such as revealing other offers. You can also pressurize your buyers by giving them a hard deadline. However, it is important that you keep your cool, and use these tactics rationally. This is a hard time for the buyer as well, and putting too much pressure on them can backfire. It’s exciting to get multiple offers on your home, but there is a lot of thought that goes into picking the right one. This is a very important decision, and you have to take your time to choose the best bid. Go through all the offIf you’re selling your house in a good real estate market, you may be lucky enough to receive multiple offers. If you’re even luckier, you may have a bidding war on your hands. Although it seems like a dream scenario, many sellers don’t know how to handle so many offers. When that happens, it can be difficult to choose the right bid. You want to sell your house quickly, of course, and for a good price. Selling your home is a big step, and you’ve got to weigh all your options carefully. While you may be tempted to go for the highest offer, there are many other factors to consider in the process.ers one by one. Once you’ve considered the price, closing period, and contingencies, you should be able to land on the perfect buyer for your home. Originally published at ​https://medium.com/