Don't Get Overwhelmed With Offers
If your home is up for sale, you might not consider a time when you are overwhelmed with offers. The housing market is not just up in most places, it's hot. If you are wondering how to deal with multiple offers, read on to find out how you can be prepared when they start rolling in.
Discuss Pricing With Your Agent
Naturally, price is key. That doesn't mean, however, that price is the only thing you need to think about. Even if you and your agent have agreed on a fair selling price, the real estate market can change overnight. Depending on the local market, you might even receive offers above your asking price. In all likelihood, your agent will recommend an asking price based on what are called "comps". Comps stand for comparable prices and are computed by comparing similar homes in the same general area. Homes for the last few (say, two or three) months are used for comparing prices. With a rising market, though, your selling price could well be over the suggested comp price. The opposite is also true. As each offer comes in, try to remain flexible about what to expect.
It's Not Just About the Price
Once you have your price figured out, things only get a bit more confusing when you consider other parts of a real estate deal. Take a look at just a few issues that can accompany an offer and that can muddy up the situation. Closing costs can be considerable for both sides. Buyers may offer to pay more of the seller's costs to sweeten the deal. Buyers might also expect the sellers to pay more of their closing costs if they pay full asking price. Contingencies are common with all real estate transactions. Some common contingencies are not remarkable but some may be more burdensome than others. For example, having a passing home inspection is common but having the seller promise to fix every little issue is not as common. Depending on the circumstances, you might either embrace a contingency or nix the deal entirely. Consider these contingencies:
- The buyer has to secure financing or the deal falls through (another common contingency).
- The seller has to find and close on a new home before the closing date.
- The home has to close by a certain day.
- Certain items of furniture must come with the home (such as a hot tub or pool table).
Sorting out prices and contingencies can be difficult, particularly when faced with several offers at the same time. Count on your real estate agent to help you get the most possible for your home.
For more information, reach out to a local real estate agency.