How to choose the best offer in a multiple offer situation

We are in a very competitive market right now, which is many times providing sellers multiple offers on their homes. So how do you determine which offer to take? Sometimes the highest offer isn’t the best offer. Here we will show you how to choose the best offer in a multiple offer situation. 

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When deciding how to choose the best offer in a multiple offer situation, every seller’s needs are different. Have you found and purchased a new home? If so, a quick closing would be very beneficial. Maybe you haven’t found a home yet and are still searching. If this is the case either a longer close or a temporary occupancy might help. Cash is always great, but what if a buyer has no financing, no appraisal and offers $20k more?

Here are a few items to consider outside of highest net proceeds. 

01. Contingencies – Contingencies are like hurdles for sellers. The less there are, the easier it is to get to the finish line. 

02. Closing date – The longer you are under contract, the more chances there are that something could go wrong. A shorter close date is a safer bet for a seller.

The more earnest money on the table, the less likely the buyer is to pull out.

03. Earnest Money – If the buyer terminates the contract outside of their contingencies, the seller would get to keep their earnest money unless otherwise negotiated. The more earnest money on the table, the less likely the buyer is to pull out.

04. Buying as-is – Knowing ahead of time the buyer will not request repairs can help guarantee the original contract price at closing. 

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