The Seller's Market

This means war! How to handle multiple offers

Your home has been a virtual Grand Central Station of activity since being listed in this hot-and-heavy seller’s market. Interest in your home has been high since the get-go and now you’re faced with what some consider the holy grail of real estate scenarios - multiple offers.  

Naturally, you should go with the highest bidder. But wait. That offer - while crazy-high at thousands more than your asking price - is conditional on financing, a home inspection and the buyer selling their home. While the money is attractive, you’re questioning whether you should effectively take your house off the market while waiting for the buyer to firm up. Those conditions make it much less appealing than the competing prospect that came in with no conditions, albeit at a lower price.

So, what is a seller to do?

That depends on you and what’s most important. If it’s money, you have your answer. If you need a firm closing date, then you need to go with the offer that lines up with yours. Perhaps you’re more comfortable with the buyer who put down a deposit of $5,000 compared to the one who wrote a cheque for $1,500. An offer to purchase with more money is definitely attractive, but if their terms don’t meet yours, a lower-priced offer with fewer strings may be best.

When more than one offer comes in, you generally have one of three options: accept one of the offers because you like the terms, counter one of the offers and change those terms that are not acceptable or you can ask the bidders – whether there are two or 17 – to improve their offers. But be warned: this final tactic can leave you high and dry if all bidders back off.

In the end, you need to determine what is more important and what you’re most comfortable with.  A riskier yet high-priced offer that could fall through because of conditions or a lower-priced offer that’s a sure thing? You decide.

 

Jeff Hewson

Sales Representative
Century21
www.century21.ca/jeff.hewson

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