Home Seller Strategies for Handling Multiple Offers

The most effective home seller strategies for handling multiple offers typically result in a good return on investment. Because Orlando is a hot real estate market, there’s generally ample opportunity to sell a home quickly. Sellers wanting to generate a lot of interest can employ different methods. These vary depending on the particular state of the local real estate market and the property’s condition. If your goal is to sell fast, you can do so by creating a multiple offer scenario.

How Home Sellers can Attract Multiple Offers

To generate multiple offers on a home, sellers should price their properties aggressively. But don’t go overboard. Speak with your listing agent and create a game plan. You want your house to stand out in terms of price but not send the wrong signal. Buyers and real estate professionals should have ample access to your house. While this is a hassle, it’s something that will generate more interest. In addition, holding a spectacular open house will help to showcase the best of your property.

…the seller has many options and really has most of the control here. With multiple offers, the seller can simply select the one that he or she favors most. Or, they can counter all offers to get the best price and terms. Or, they can counter the one closest to the price and terms they’re seeking. —Realtor.com

Before you do list your property for sale, it’s a good idea to conduct a pre-listing home inspection. This alerts you to any existing issues and allows you to address them. It also demonstrates you have nothing to hide. Another proactive move is to declutter your entire home and deep clean every inch. Tidy-up the garage and beautify the landscape for the best curb appeal. Then, consult your listing agent about pricing. With the right combination, you’ll be able to attract multiple offers.

Home Seller Strategies for Handling Multiple Offers

Handling multiple offers is part science, part art. As the seller, you have a large amount of control over the situation. However, you must proceed carefully to keep your options open. This is because of the fact in a balanced market, when the supply of inventory is 6 months, about 10 percent of all transactions fall through. In a market favoring sellers, where there is less than 6 months of inventory, the number of pending transactions which fall through increase five fold, to approximately 50 percent. Here are some home seller strategies for handling multiple offers:

  • Compare buyer purchase offers. You’ll no doubt be drawn to the highest number but this should not be the only deciding factor. Think about it this way: if one buyer is offering all cash but a slightly lower purchase price than another buyer who needs financing and is offering a little more, which is better? Of course, the cash offer is the best choice because you won’t have to worry about mortgage approval.
  • Look at the various contingencies. The typical purchase offer contains certain contingencies which protect buyers. Usually, these are home loan approval, home inspection, appraisal and so on. Look at each purchase offer’s contingencies and compare them with the others. Think carefully about how each scenario will likely play out to make a better decision.
  • Consider the kinds of purchases. In the majority of residential real estate purchases, buyers need financing. A cash offer is obvious preferable, but if there aren’t any, consider each buyer’s need for financing.
  • Compare incentives given by buyers. Eager buyers will not only waive certain contingencies, they’ll also include seller incentives. These can include a flexible closing date, an escalation clause, a larger earnest money deposit, paying all closing costs, and more. Compare these, along with the purchase prices, type of purchases, and waived contingencies to make the most informed decision.

If you are considering selling your home here in Orlando, contact us for the latest market information. Together, we’ll devise a strategy to market your house effectively.