Monday, July 26, 2021 / by John Salkowski
Here’s my team’s process for handling a multiple-offer situation.
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Everyone knows that today’s market is white-hot. The market has shown some signs of stabilizing, but it is still common for sellers to find themselves in a multiple-offer situation. What do you do if you’re receiving multiple offers? Today, I’ll break down our process for handling a multiple-offer situation.
Recently, we received five offers on one of our listings. This can be an overwhelming situation, so it is important to have a plan in place. The first thing we did was create a spreadsheet that listed our offers’ benefits, highlights, terms, and price. Afterward, we emailed our spreadsheet to the seller and discussed the pros and cons of each offer.
I’m sure you can imagine the confusion that comes with a multiple-offer situation. That’s why I highly recommend you hire a listing agent. An experienced professional will help you navigate through the confusion and come out with the best deal possible. One benefit to hiring a professional is that they understand what’s important in an offer outside of price. For example, the down payment a buyer is putting down on a property can be a big indicator of their cash reserves.
"During the five-offer situation, we were able to secure our client the highest price, the fewest contingencies, and the most money on the down payment."
Contingencies are one of the most important things to keep in mind during a multiple-offer situation. A few of the most common are mortgage commitment contingencies, home sale contingencies, and inspection contingencies. When you are selling your property, you want as few contingencies as possible. It may be worth it to sell for a slightly lower price to avoid problematic contingencies.
During the five-offer situation I described above, we were able to secure our client the highest price, the fewest contingencies, and the most money on the down payment. Although this buyer could have gotten lost in the white noise of a multiple-offer situation, our team of professionals immediately recognized them as the strongest buyer.
If you have questions regarding multiple-offer situations, or if you have any other questions related to real estate, do not hesitate to reach out to us. We’d love to hear from you.