The real estate market has been doing great lately and I’ve been very successful at getting multiple offers for some of my sellers. Multiple offers are great if you’re a seller. It means you’ll probably end up making more money on your house. It can also be a little bit overwhelming to keep track of all the offers coming in.
I have a great system for evaluating multiple offers to make the best possible decision and I’d like to share it with you today. The first step is creating a transaction summary. This basically is a one-page summary of everything contained in the offer. Anything the buyer wants and everything they’re offering is found here, along with a net-proceeds estimate to let you know how much you’ll walk away with from the transaction.
That summary is created on each and every offer that comes in so you can compare them to one another and see all the pros and cons right away.
The next step is to really go behind the numbers in the transaction summary and get more details about the buyer from talking to a lender. We’re just trying to find out how strong and stable that buyer is. Sometimes the highest offer isn’t the best if the buyer is weak.
Once you make your decision, we also thank and inform the other buyers who we don’t pick. We usually encourage the 2nd-place buyer to make a backup offer if they’re really interested in the house. Not everybody wants to be a backup buyer, but we like to offer them that option at least and don’t want to burn any bridges.
If we follow this process, you’ll be in a great position to make a good decision about your multiple offers and you’ll be in a good position to move forward after the multiple-offer situation.
If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.