As a seller, what is more ideal than multiple offers? Aside from an all cash offer, just about nothing. When you have seemingly similar offers, how do you evaluate the strength of each offer? Here are some tips of how to evaluate multiple offers:
Each seller is different and will have different concerns and needs when selling. Some may be driven by price, some may be driven by flexibility, and others may be driven by level of risk. So when reading below, keep in mind each one will be received differently when you’re evaluating offers. Buyers usually ask what they can do to make an offer stronger, so knowing the answers to each of these will help:
2. Close date – quick, long, rent back, subject to home of choice.
3. Contingencies – what was waived? What was included? How long is each contingency (ie. the duration of time your home will be off the market until the contingency is satisfied)? Is there something you’re concerned about more than the other (ie. Home Inspection vs. Appraisal)?
4. Down Payment – this comes into play with an appraisal and shows some insight into the mindset of the buyer (generally, a buyer with more cash will be less likely to ask for every item on an inspection versus someone with little cash who actually can’t afford to fix many things from the start)
5. Type of Financing – Cash, Conventional, FHA or VA, each has their own pros and cons (some homes may not even qualify for an FHA or VA loan)
6. “Extras” – flexibility with close date, “love letter” to the seller, quickness of offer submission and questions answered
7. Deposit – shows commitment to staying with the offer
In today’s market, many buyers are waiving contingencies which obviously appeals to a seller. But what they waive and what they include is important to look at as a whole picture. Maybe they waive something but the price isn’t high enough, maybe the price is high but they include contingencies, maybe the prices are identical but the details are different, etc. Knowing what’s important to you will help guide you in picking the right offer.