The Colorado real estate market continues to be competitive due to low inventory and high demand. This means that multiple offers are more likely if you are selling your home this year. Receiving multiple offers is a dream scenario for most sellers, but it’s important to handle it properly to maximize its benefit. Here are a few tips that may help.
Set a deadline
In some markets, multiple offers can be predicted ahead of time. It may make sense to disclose a specific offer submission deadline. Why? It prevents one buyer from quickly swooping in with an offer with a short response deadline, pressuring you to respond before knowing what other offers may be coming. More buyers at the table at the same time will drive up the selling price. The offer deadline increases that possibility. Keep in mind, however, that this only works in select markets. Defer to your real estate agent’s advice.
Give all buyers equal opportunity
When buyers submit their initial offers, they may not yet know just how much competition there is for your home. It’s a good idea to return to all buyers, disclose the number of offers received, and give all parties an opportunity to submit their best and final offers. You may be surprised at the results.
Rather than asking only the top buyers to submit their best and final,… give all buyers equal opportunity at this stage. The sense of urgency increases once buyers know that others are interested in your home. Thus, a buyer who originally submitted a lower offer could end up presenting the highest offer in the end.
Review all offer conditions
Any good agent will tell you that offers are about more than just price. Deadlines, contingencies, deposits, and other conditions are extremely important factors as well. For example, if one buyer submits an offer for $450,000 but has a home to sell and another buyer offers $445,000 without a home sale contingency, then you may be more inclined to go with the lower offer. Likewise, when comparing two equal priced offers, you may go with the buyer financing 80 percent as opposed to 100 percent, since the 80 percent buyer appears more financially stable and is less likely to have issues with mortgage approval.
Consult with your agent
The potential scenarios are endless, so consult with your agent when reviewing offers. He/she will help you evaluate risks based on his/her extensive experience. This will enable you to make smarter decisions.