22 Apr What to consider in a multiple offer situation if you are the seller
What to consider in a multiple offer situation if you are the seller
Most articles you see written are about multiple offers have to do with how the buyer can have their offer be the one accepted. That will be a future topic. In a seller’s market what is useful to negotiate?
Elements in an offer that the seller might find important.
While this is not all the terms and conditions you can negotiate in your favor in a multiple offer situation in a seller’s market, these are some of the most common.
· Price – asking for highest and best with plenty of time for all interested parties to view your home is fair and in your best interests.
· Financing – most offers are contingent upon the buyers securing financing. The more they have down normally means they have an easier time through the financing process. This does not mean a no money down VA buyer is not going to close properly.
· Closing date – pick a date that is ideal for you. Out past 60 days might be problematic for some buyers.
· Seller paid closing costs – if you pay the buyers closing costs or a portion of them it could possibly create an appraisal concern if the sales price is greater than appropriate comparables.
· Appraisal – we are seeing some buyers come in with an appraisal guarantee. That means they would add additional down payment to the loan if the appraisal is less than asking price. This can be a negotiation item.
· Inspection – some offers are coming in without an inspection contingency. This means one less contingency to sweat through and means you will not have any repair requests from the buyer.
· Possession date – traditionally possession is immediately after closing. While it is uncommon to close and rent back or give possession later it is still a negotiation item.
· Earnest money amount – historically, one percent of the sales price is common. In this market it is more commonly negotiated.
· Assessments – it has been common for the seller to pay all outstanding assessments on a
home at closing. That is an item now more commonly negotiated.
Those are many of what to consider in a multiple offer situation if you are the seller. But there are many others that can be important. I suggest you have an experienced real estate agent list your home that can help you negotiate and navigate all the terms of your sale.
I hope this blog on “What to consider in a multiple offer situation if you are the seller” was helpful. Call me with questions.
Please reach out to me if you have questions about housing in Minnesota at 612-386-8600.
Real estate is a wonderful investment!