Tips To Handle Multiple Offers When Selling Your House

Updated: Feb 16

Somehow the pandemic has unleashed a rapid surge in the housing market that is not abating anytime soon.

While the seller’s market is at full tilt due to low housing inventory, multiple buyers are indulging in bidding wars against each other for a limited number of active listings in the locale; suddenly you are fielding an influx of offers.

An inevitable rush of uncertainty clouds your mind as you are pulled in towards a gamut of compelling offers on the table meeting differing needs.

From a large earnest deposit to a pre-approved qualifier to securing an extra time to move out, while you may be thinking that receiving so many offers has an edge yet you are still hesitant to ruffle any feathers with a counteroffer because choosing between the profitable offers is a dicey gamble –it has its perks, it has its flaws.

Let’s scoop into a list of savvy tactics to deal with multiple offers aptly while ensuring you get top dollar cash for your home.

Start with a price but don’t just end there

The highest offer is not necessarily a lucrative deal! It might be overwhelmingly nice to get a big offer, especially if it’s above the asking price. It makes sense!

Being involved in the bidding war boasts a steady position to negotiate your terms as it increases the likelihood of selling your property way over your asking price.

But in reality, the highest offer comes with complicated contingencies rather than just money being offered.

For instance, the top bidder might not be able to qualify for the pre-approval, or the buyer might have contingencies in the offer that is not in your best interest. It is important to thoroughly go through the entire contract, considering how much cash the buyer is willing to put down.

The higher down payment and relatively lower home loan instigates that the buyer will qualify for the mortgage. The offer that best reflects your home's value amalgamated with terms that befit your needs is a perfect choice.

Can the buyer afford the offer?

When the buyers intend to pay via cash, you don't have to be concerned about whether they will qualify for the mortgage or not. Upfront cash means the purchase is more likely to close quickly.

Please beware of the cons who may have been approved for smaller loans than their offer, hoping to bridge the difference somehow. You may inquire the potential buyers to proffer documentation of their savings and assets to pay the cash.

Most of the time, the buyers need a mortgage to secure the deal, considering whether the buyer is pre-approved for a home loan or not. You can use online mortgage calculators like Smartasset to calculate the mortgage.

A lucrative offer from a pre-approved buyer is sounder than one lacking a secure financing background.

Compare contingencies

All the tempting offers come with a few set of conditions, if not met, would end up canceling the deal.

Certain contingencies include securing time to get approved for a mortgage, a home appraised for a specific value, or having the home pass the inspection.

It is always viable to choose an offer with minimal contingencies to minimize the chances for the buyer to back off the deal.

What is the worth of your house?

Whenever you get the highest bid against your property, always compare the price to your home’s worth.

Because when the buyer applies for a loan, the lender requisites an appraisal to verify the market value before funding the loan.

It can be a bit pesky for both parties when the house gets a low appraisal –the buyer might not have the funds to bridge the difference between the appraised value and sale price.

Just ensure if the buyer can close despite the low appraisal.

Review buyer’s extras

Some buyers tempt to hitch sellers' attention with their unconventional offers; they may suggest to pay some of your closing costs to outstand the other bidders.

From offering with an escalation clause to outbid another bidder, if you are muddled between different offers, these extras can sweeten the tip of balance.

Counter the best offer and keep a few potential ones in the waiting

If you have your one favorite offer, but you need to iron a few details to close a lucrative deal, then keep a few buyers waiting in the wings, just in case your favorite deal doesn’t close on your terms.

How swiftly can the buyer close the deal?

Closing a sound deal as quickly as possible is in your best interest. But sometimes, the highest bidder turns out to need a month or two to close the deal.

Now what?

If you have luxury time on your hands, then maybe it is worth getting the higher offer. But in general, it is ideal to opt for a quick closure to get your money and make an investment while the iron is still hot.

Get super clear on what you want

Your goal is to sell your home and earn top dollar cash from it, it makes sense, but the deals are sometimes not as straightforward as they seem. You have to be sure how ready the buyer is to buy your house or how prepared you are to leave the house.

  • It is essential to be flexible to make a sound decision that is in your best interest.

  • It is wiser to take a lower offer if it gives you what you want –no contingencies, quick closure, upfront cash, optimal down payment.

Once your home is successfully listed on the MLS sites, scoring a multitude of offers in a small time frame can be exciting if you know how to thoroughly go through these offers, including price, contingencies, and ability to close.

Just in case the For Sale sign has been up for months, Honest Review 4 You is an ultimate hub to get you through this milestone, prompting serious house cash buyers giving competitive offers to close the deal quickly.

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