Recently, our Illinois market has become slightly less competitive than it was in the past. But it is still fairly common for a listing to receive multiple offers.
With that said, how can buyers and sellers succeed in multiple offer situations?
Let’s start with what sellers should do. First of all, it’s really important to not focus solely on dollar signs. Sellers should also look at all the terms of the contract. These will be as significant as the offer price because they reveal important information about the overall quality of the offer.
Some buyers may make emotional bids they can’t actually afford. By looking closely at their offer, sellers and their agents will easily be able to discern if this is the case. Accepting an emotionally motivated offer can often lead to a broken deal, as many buyers will back out once remorse starts to kick in.
It’s also important to compare a buyer’s offer against your home’s appraised value. Too large a disparity between these figures will lead to one of three scenarios: You will either have to lower the price, the buyer will have to pay the difference in cash, or you will have to put the property back on the market.
There is also a fourth option: A truly serious buyer may be willing to waive the appraisal contingency.
The bottom line is that you must work closely with a trusted agent when choosing between multiple offers. This will be the key to unlocking your success.
As for buyers, my best advice for tackling multiple offer situations is to not play games. The important thing is to collaborate with your agent in determining what you’re truly willing to pay for a home. That said, price isn’t everything.
Figuring out what’s most important to a seller will help you to craft the most attractive offer possible. Sometimes an offer that allows the seller more time in the home may win out over one with a higher price. It’s all about what motivates the person selling the property.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.