How Sellers & Buyers Can Navigate Multiple Offers
This month marks the start of spring and a spring into real estate sales! While people buy and sell homes year-round, the warmer months bring buyers out in force and the potential of multiple offers increases.
Tips to Ease the Stress of Bidding Wars!
Multiple offer situations, also referred to as bidding wars, are fairly common in Chicago and run the gamut of price points – from moderately priced homes to the very expensive. It all depends on the popularity of the neighborhood and whether or not the property seems to hit most buyers’ preferences.
A multiple offer situation can be quite stressful for buyers, especially if they have their heart set on a specific home. And, for sellers, if not handled smartly and respectfully, all those offers could fall through. That’s why it’s important to have an experienced and knowledgeable realtor on both sides– one who knows current market trends and can help you negotiate. It is important to know the comps — What price did similar properties sell for in the recent past? What is the price of similar properties under contract? What is the price of similar properties currently on the market? It’s also essential to know that a seller’s asking price is just that – an asking price. Offers in response may come in at that price, below, or even above. So, if you find yourself in a multiple offer situation, here are a few straightforward tips for sellers and buyers to help you get through the process and successfully sell your property or find your dream home!
10 Tips to Ease the Stress of Multiple Offers
- Ask all buyers to give their highest and best offer by a certain deadline.
- Consider the financial strength of the buyer. A larger down payment can mean a stronger buyer. Make sure the buyer has a letter of approval from a reputable lender.
- Does the closing date work for you?
- What are the contingencies? Does the buyer need to sell their home first?
- Don’t just focus on the highest price. Remember, the home still needs to appraise for that amount if the buyer needs financing. Lenders will only loan money for the appraised value. This could kill the deal.
- In an environment of multiple offers, once a property that appeals to you hits the market, be vigilant about viewing that property as soon as possible. See it as soon as it hits the market. Don’t wait until the weekend when you might have more time. Be on guard at this point of your search.
- Let the seller know you are serious. Come in with your best offer. The less contingencies, the better. Be flexible with the closing date. Get pre-approved for a loan and have a letter of approval prepared to be submitted with your offer.
- Include a letter with your best offer. It may not always help, but it certainly doesn’t hurt. Letters can add a more personal, emotional touch.
- Only offer as much as you can afford and what the market can bear. Remember for you to get financing, the property has to be appraised. Don’t lose sight of your budget and goals. This means sticking with your financial plan, the one you made before there were multiple offers. It is easy to get caught up in the frenzy of a bidding war – want to win at all costs, at the same time forgetting your financial objectives.
- Don’t be discouraged if your offer is not selected. Sometimes multiple offers fall through and then sellers contacts the next in line. And, if that’s not the case, another property will come along.
No matter what, remember to stay optimistic. Buying or selling your home can be an overwhelming process. Make sure you are comfortable with your realtor. It should be someone you trust and respect. In addition, communication is extremely important. You and your realtor should be on the same page. Together, you can sell your home at the best price or find the perfect home while staying true to your financial plan.
Are you ready to sell your property or begin your search for your new home? Let me help you start this exciting journey! Contact me today to navigate your purchase or sale. I’m passionate about helping every client succeed in every aspect of the buying and selling process.