When the market is hot, sellers can get multiple offers, and even experience a bidding war. The best offer is not always the one offering the most money. How do you handle a multiple offer scenario when you’re selling your home?
Pre-approved buyers are more attractive as their bank has already decided that they are a good financial risk. Ultimately, cash offers are sometimes the best offers, as they are convenient and there is no bank funding involved.
Choose a buyer who has enough money for a downpayment to satisfy their lender in regards to the appraisal versus the sale price. When there is competition for a home, the sales price might go up significantly over the appraisal, causing the buyer to possibly cover the difference as part of the downpayment.
Buyers that do not have a contingency in their offer – meaning for instance that they need to sell their current home to buy your home – are obviously poised to move quicker if that is important to you. With contingencies, the fewer the better. In a multiple offer scenario buyers might waive contingencies like home inspections, financing or home sale contingencies just to make their offer more appealing.
