Multiple Offers On Your House
The best case scenario when selling your home is receiving multiple offers, all of which meet or exceed your listing price. That’s the scenario you might find yourself in if you’re selling in a seller’s market.
But just because you receive several offers doesn’t mean you can throw caution to the wind. Nor does it mean you can ignore the accepted standards of home-selling etiquette. Do so and you might scare away potential buyers.
This article will explore some of the circumstances you’ll face while receiving offers from multiple parties. We’ll provide several tips along the way to help you sell your house for the highest possible price.
Deceiving Potential Buyers About Your Home’s Popularity
Don’t mislead potential buyers (or their agents) about the offers you receive in an attempt to generate interest. If someone asks whether other buyers have shown interest, it’s fine to confirm as much. If you’ve received offers that have met or exceeded your listing price, mention that as well.
But resist the temptation to exaggerate the prices others have offered to pay. The truth has a way of getting out. Remember, no one wants to work with someone they can’t trust.
How To Avoid Headaches From The Earnest Money Deposit
An earnest money deposit demonstrates serious interest on the part of the buyer. If the buyer decides not to purchase your property, you may be entitled to keep his or her deposit (depending on the stipulations of the purchase contract).
When multiple parties are interested in buying your house, one or more of them may rush to make out a check for the deposit. They may unwittingly make it out in your name. That can create legal problems with regard to who keeps the deposit if the sale doesn’t close.
The check for the earnest money deposit should be made out to the escrow company or real estate brokerage. The money is supposed to be held in an escrow account, and released at closing.
Rely On Your Realtor To Generate Attractive Offers
Your agent’s job is to find interested buyers and persuade them to generate offers. If your house is in good condition and there’s sufficient demand from the local market, those offers should be reasonably close to your listing price.
Sellers sometimes go behind their agents’ backs to promote their listings. For example, they might list their homes on CraigsList or distribute flyers. In doing these things, they often unwittingly sabotage their agents’ efforts.
Keep in mind that even if such activities result in the sale of your property, you’ll still need to pay your realtor’s commission. Most sellers’ agents include that detail in the contracts they sign with their clients. That being the case, let your realtor handle the job of promoting your listing.
Asking Interested Parties To Submit Their Best Offers
When you receive multiple offers, don’t just accept the highest one. Some interested parties may be willing to outbid their competition. Ask your realtor to contact the buyers’ agents and solicit a final round of bids. Prospective buyers should be encouraged to submit their best offers.
Taking that approach ensures you’ll receive the highest possible price for your home. Those who are willing to increase their original offers will have a final opportunity to do so.
Final Thoughts On Selling Your Home
In a seller’s market, some buyers may be willing to forgo the option of having a professional inspection performed (assuming their lenders allow them to do so). But that’s a recipe for trouble. If major problems are discovered after the closing – for example, faulty plumbing, an eroding foundation, etc. – you may find yourself on the receiving end of a lawsuit.
Have an inspection performed to avoid such issues. If possible, do so before listing your home for sale. That way, you’ll know upfront the types of repairs that need to be addressed, either by you or the buyer.
Receiving offers from multiple parties is an ideal situation. It makes selling your house a much simpler proposition. But it still pays to stick to the accepted standards of home-selling etiquette to ensure you get the best possible price for your property.