Putting your home on the market can be overwhelming, which is why you want to work with a top-notch real estate agent. The best-case scenario may occur, and instead of waiting for a single offer on your home, multiple families make competitive offers on the property. The issue is, which offer should you choose?
Here are a few simple tips to help you weed through all the options in your bidding war and ensure your choose the right offer on your home.
Only Choose Buyers Who Have Pre-Approved Loan Offers
When it comes to securing a mortgage, there is a vast difference between the terms "pre-approved" and "pre-qualified." A pre-approved mortgage means that the buyer has essentially guaranteed a mortgage. A pre-qualified mortgage offer typically means that the buyer meets the minimum qualifications to secure a loan on paper but has not yet applied for the loan.
Unfortunately, a pre-qualified loan offer does not mean that the buyer will actually qualify for the loan, and there are several things that can make the bank think twice about approving the loan, such as a bad credit score or an inadequate down payment.
Only choose potential buyers who have a mortgage pre-approval instead of a mortgage pre-qualification.
Let All the Potential Buyers Know About the Bidding War
Whether you have three or fifteen offers on your home, you can tell all of the bidders that there are multiple offers on the property. In many cases, this will, unfortunately, cause some of the bidders, especially the bidders who cannot afford to offer more money or other perks (such as a shorter closing time), to back out.
In many cases, this will ignite the bidding war even more, and there might be one buyer who is so interested in your home that they are willing to offer far more than you are asking for the property. Either way, informing the bidders that there is a war to win your property will help you determine who is willing to pay the most money for your home.
Consider the Extras
Finally, in addition to the highest bid, consider some of the other perks and extras that potential buyers are willing to offer. For example, consider a buyer willing to agree on a closing date or a buyer who will pay you in cash.
If you are selling a home with multiple offers, your real estate agent can help you determine the best potential buyer to work with.
Contact a local real estate agency, such as HS Capital Realty LLC, to learn more.Share