{"id":1772,"date":"2021-10-27T11:00:00","date_gmt":"2021-10-27T15:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1772"},"modified":"2024-04-25T23:19:24","modified_gmt":"2024-04-26T03:19:24","slug":"what-every-home-seller-should-know-about-choosing-the-best-offer","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/what-every-home-seller-should-know-about-choosing-the-best-offer\/","title":{"rendered":"What Every Home Seller Should Know About Choosing the Best Offer"},"content":{"rendered":"\n<p><strong><em>Is Highest Always Best?<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/10\/what-every-home-seller-should-know-about-choosing-the-best-offer-1-1024x384.jpg\" alt=\"Two people at a table agreeing over legal paperwork for a real estate transaction\" class=\"wp-image-1774\" width=\"1024\" height=\"384\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/10\/what-every-home-seller-should-know-about-choosing-the-best-offer-1-1024x384.jpg 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/10\/what-every-home-seller-should-know-about-choosing-the-best-offer-1-300x113.jpg 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/10\/what-every-home-seller-should-know-about-choosing-the-best-offer-1-768x288.jpg 768w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/10\/what-every-home-seller-should-know-about-choosing-the-best-offer-1.jpg 1092w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>If you\u2019re selling your home and have attracted multiple bids, super! Now, how do you choose the best offer?<\/p>\n\n\n\n<p>According to the National Association of REALTORS\u00ae:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-default is-layout-flow wp-block-quote-is-layout-flow\"><p><em>Your listing broker can explain various negotiating strategies for you to consider. For example, you can accept the \u201cbest\u201d offer; you can inform all potential purchasers that other offers are \u201con the table\u201d and invite them to make their \u201cbest\u201d offer; you can \u201ccounter\u201d one offer while putting the other offers to the side awaiting a decision on your counter-offer; or you can \u201ccounter\u201d one offer and reject the others.<\/em><\/p><\/blockquote>\n\n\n\n<p>Buyers use strategies. A seller must anticipate those. It will help the seller rank deals accurately, zeroing in on the buyer most likely to close, and to leave the seller in the best position at closing.<\/p>\n\n\n\n<p>Here, we explore some factors to weigh as you plan for a \u201cgood problem\u201d of getting more than one offer.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Communicate Early and Often<\/h2>\n\n\n\n<p>The moment you know several people are serious about buying your home, you have a communication task. The seller\u2019s side needs to make sure the buyers\u2019 agents know what\u2019s going on, and this has to be done properly.<\/p>\n\n\n\n<p>Indeed, real estate ethic codes oblige the seller\u2019s agent to be transparent and cooperative, and to present fair and prompt counter-offers. No one can say how any individual buyer will respond to these communications. That\u2019s to be expected. Some buyers, learning that there is competition, will raise their bids. Others may decide to go off and look at another property.<\/p>\n\n\n\n<p>Either way, keeping communication lines open is vital. Everyone involved should feel confident that they\u2019re being kept in the loop and promptly updated. At the end of the day, a seller hopes to find the most cooperative and reasonable buyer, and good communication helps that happen. It\u2019s always good to hand off the home to a person who senses appreciation and goodwill in the transaction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Resist the High Offer<\/h2>\n\n\n\n<p>A high bid is sure to get a seller\u2019s attention. But there are several reasons to think twice if it\u2019s <em>too <\/em>high:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The high bid could come out essentially lower than the offers of others who won\u2019t expect as much from you by the time you close.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>As your agent can explain, commissions, fees, taxes and other costs may vary, and can be based on sale price.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>If a buyer\u2019s offer significantly exceeds your asking price or the actual value of the home, the deal could fall through later, when the buyer\u2019s mortgage company sees an appraisal that values the home at a lower price point than the bid. &nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>A lower bidder could be the one most likely to successfully get to the closing table. Mortgages can fall through at the eleventh hour. Sometimes, a buyer\u2019s employment or credit situation changes in the runup to closing. When selecting one bid out of several, take note of who is demonstrating their commitment by placing substantial earnest money down.<\/li><\/ul>\n\n\n\n<p>High bids can be part of a buyer\u2019s strategy. The buyer wants to impress the seller, of course, but might also think the seller\u2019s price will come down during negotiations based on the appraiser\u2019s or the inspector\u2019s report. And this brings us to our next section\u2026<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Consider What\u2019s Contingent<\/h2>\n\n\n\n<p>Be careful not to cut your profit by making more concessions than necessary. Be careful, too, with contingencies that take a lot of time and extra effort to meet. A buyer who expects hefty contributions to closing costs or an array of repair work might not be your top choice.<\/p>\n\n\n\n<p>The renter whose lease is ending, or a potential buyer who is moving from a popular condo property, might be ready to close the deal much faster than someone with a big house that\u2019s harder to sell.<\/p>\n\n\n\n<p>Be sure you, as the seller, can keep the ball moving, too. Is your deal contingent on your purchase of your next home? You might consider having a \u201cPlan B\u201d in case you run into challenges as a buyer.<\/p>\n\n\n\n<p>\u261b <strong><em>Need tips for <\/em><\/strong><a href=\"https:\/\/www.deeds.com\/articles\/pulling-it-off-how-to-sell-your-current-home-while-buying-the-next-one\/\"><strong><em>selling your current home while buying your next one<\/em><\/strong><\/a><strong><em>? Deeds.com has you covered.<\/em><\/strong><\/p>\n\n\n\n<p>And which potential buyer has money ready to cover the \u201cappraisal gap\u201d if the home isn\u2019t valued as the parties expect? Has one hopeful buyer handed you documented proof of funds ready in an account specifically to cover an appraisal gap? Assurances of this type reduce your risk as a seller, therefore adding real value to an offer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Think About the Inspection<\/h2>\n\n\n\n<p>If you\u2019re selling in a competitive market, your agent might get a potential buyer to waive an inspection contingency. Or you might counter a high offer with a discount if the buyer takes your home as-is, or with a set limit on what you\u2019ll pay for items the buyer wants you to fix. A set limit is a good example of communication. The buyer gets an allowance if something substantial turns up in the inspection. The seller has a known cap on repair costs.<\/p>\n\n\n\n<p><strong><em>Pro tip:<\/em><\/strong> By waiving an inspection, a buyer gives up leverage in negotiations, and strengthens the seller\u2019s position. Waiving standard contingencies puts a buyer (and the lender than backs the buyer) at heightened risk. Not every buyer can waive an inspection or appraisal contingency. Especially when the buyer\u2019s financing depends on a government-backed loan, contingencies may be baked into the required approval process.<\/p>\n\n\n\n<p>Even if your buyer decides to waive an inspection contingency, you\u2019ll still be disclosing defects that impact the value of your home, using a state-specific form. Sellers who omit or mislead buyers with incomplete disclosure run the risk of liability for failing to disclose defects that they, as homeowners, should have known about and declared. &nbsp;<\/p>\n\n\n\n<p>Of course, sellers who use the term&nbsp;<em>as-is<\/em>&nbsp;are really just pointing out that the house is older or needs some work, hinting to buyers that the seller is discounting the price appropriately. But real estate agents and real estate lawyers can explain the appropriate contractual language to limit the buyer\u2019s leverage.<\/p>\n\n\n\n<p><strong><em>\u261b <\/em><\/strong><a href=\"https:\/\/www.deeds.com\/articles\/selling-your-home-as-is-heres-what-you-should-know\/\"><strong><em>We offer tips here for the sellers thinking of selling a home as-is<\/em><\/strong><\/a><strong><em>.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tune Into Your Agent\u2019s Expertise<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"450\" height=\"300\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/10\/tune-into-your-agents-expertise.jpg\" alt=\"Persons hands shaking and handing house keys to each other.\" class=\"wp-image-1775\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/10\/tune-into-your-agents-expertise.jpg 450w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/10\/tune-into-your-agents-expertise-300x200.jpg 300w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" \/><\/figure><\/div>\n\n\n\n<p>Numerous contingencies must be met during the course of a home sale. They vary according to the seller\u2019s and buyer\u2019s unique blend of circumstances. For example, is a condo being sold? Expect the buyer\u2019s lender to check the health of the condo association\u2019s reserve fund. Pending lawsuits against the association can throw a loan approval off track, too. Some issues defy negotiation!<\/p>\n\n\n\n<p>In any case, when multiple bidders turn up, an experienced real estate professional can advise the seller through the negotiating stage. Best practices are guided by the home state\u2019s law, local practices, and the <a href=\"https:\/\/www.nar.realtor\/about-nar\/policies\/professional-standards-and-code-of-ethics\/a-buyers-and-sellers-guide-to-multiple-offer-negotiations\" target=\"_blank\" rel=\"noreferrer noopener\">real estate agent\u2019s ethical responsibilities<\/a>. Yet the seller is always in the driver\u2019s seat when counteroffers are made.<\/p>\n\n\n\n<p>As a seller in a competitive market, you\u2019ll have to think on your feet. We hope this brief guide helps you anticipate possible scenarios before they unfold, and choose your buyer with confidence.<\/p>\n\n\n\n<p><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">National Association of REALTORS\u00ae: <a href=\"https:\/\/www.nar.realtor\/about-nar\/policies\/professional-standards-and-code-of-ethics\/a-buyers-and-sellers-guide-to-multiple-offer-negotiations\" target=\"_blank\" rel=\"noreferrer noopener\">A Buyers\u2019 and Sellers\u2019 Guide to Multiple Offer Negotiations<\/a> (Sep. 27, 2005).<\/p>\n\n\n\n<p class=\"has-small-font-size\">National Association of REALTORS\u00ae: <a href=\"https:\/\/www.nar.realtor\/about-nar\/governing-documents\/code-of-ethics\/2021-code-of-ethics-standards-of-practice\" target=\"_blank\" rel=\"noreferrer noopener\">Code of Ethics\u00a0and Standards of Practice<\/a> (effective Jan, 1, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Photo credits: <a href=\"https:\/\/www.pexels.com\/photo\/woman-in-red-blazer-shaking-hands-with-woman-in-grunge-wear-8962379\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ivan Samkov<\/a> and <a href=\"https:\/\/www.pexels.com\/photo\/person-holding-silver-key-8293778\/\" target=\"_blank\" rel=\"noreferrer noopener\">RODNAE Productions<\/a>, via Pexels.com.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is Highest Always Best? If you\u2019re selling your home and have attracted multiple bids, super! Now, how do you choose the best offer? According to the National Association of REALTORS\u00ae: Your listing broker can explain various negotiating strategies for you to consider. For example, you can accept the \u201cbest\u201d offer; you can inform all potential [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-1772","post","type-post","status-publish","format-standard","hentry","category-general"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Every Home Seller Should Know About Choosing the Best Offer - Deeds.com<\/title>\n<meta name=\"description\" content=\"Buyers use strategies. A seller must anticipate those. 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