Multiple Offers: Rom-Com or Horror
In the current real estate market, some sellers are receiving multiple offers. While this can be a good thing, figuring out which offer to choose can be daunting. Holden Lewis and Margarette Burnette tackled this topic for NerdWallet. They noted that sometimes the best offer may not be the one with the highest sales price. Here are the other terms you need to take into consideration.
Compare Contingencies: These include financing approval, home inspection, and appraisal value. If an issue comes up during the inspection or the appraisal comes in below the sales price, this could lead to a renegotiation.
How Will the Buyer Pay?: If a buyer will be getting a mortgage, ask if they will be able to cover an appraisal gap. With a cash buyer, there are fewer potential obstacles.
Consider the Timing: For sellers who already have a place to move to, a cash buyer or one who has been preapproved for a mortgage may have a shorter time frame for closing, in general. If you’re still searching for a new home, having buyers who will need more time to get through the appraisal and mortgage process may be a better option.
Look at the Buyer “Extras'': The offer may include an escalation clause, meaning an increase in the purchase price if other offers are received. Also, some buyers may agree to cover items such as your closing costs.
If you find yourself in a multiple offer situation, your Realtor® will review the details of each offer with you and help you decide which one is the best fit for your needs.
Click on the link to read the full article: https://www.nerdwallet.com/article/mortgages/handling-multiple-offers-when-you-sell-your-house?trk_channel=web&trk_copy=Choosing%20Between%20Multiple%20House%20Offers&trk_element=hyperlink&trk_elementPosition=2&trk_location=PostList&trk_subLocation=next-steps