How Home Sellers Should Approach Bidding Wars?

 How Home Sellers Should Approach Bidding Wars?

When selling your home you may strike gold and receive multiple offers. With numerous offers come negotiations and other things to keep in mind. The stressors of selling a home are common, but with a bidding war, you may begin to feel a bit more overwhelmed. The following advice should assist you in navigating through these uncharted waters. 

How Can I Get Multiple Offers?

After deciding to list your home, the first thing that comes to mind is how to get numerous people interested in the property. Obviously, you will need your home to be an attractive and sought-after property to spark the interest of buyers. A seller’s market will be in your favor when selling your home but it is not the only chance you have at seeing a bidding war. 

It’s important to understand how the list price of your home is a large factor. For instance, if you list your home too high, buyers will lose interest, but if it is listed too low, buyers may ponder if something is wrong with the property. Other actions, such as the effective marketing of your listing and having your real estate agent host an open house, are great ways to get the word out on your home. Lastly, another tip is to overlap your showings. When potential buyers see that there are many interested buyers they will get the sense that a competitive and quick offer is needed.

Let the Bidding Begin

If you now have potential buyers in a bidding war, you will need to make a wise decision on who the most suited buyer is. While an immediate thought is to accept the highest offer, it is not the smartest. You must first ensure a few things before accepting an offer. A good indicator of a motivated and committed buyer is the down payment they will set forth. A larger deposit is a positive sign that the buyer is a true contender. Not only is a down payment vital but you should also require mortgage pre-approval when dealing with a bidding war as a buyer may be pre-qualified without a full review of their finances and credit causing a potential issue with their loan pre-approval.

Money Isn’t Everything

After determining what buyers are financially suited, there are a few other things to keep in mind. Depending on your situation, you may be interested in an expedited closing or perhaps you would like to remain in the house for a short period of time. Some buyers may be able to offer you these scenarios. You may also find a buyer who is willing to waive a few home sale contingencies. Contingencies are set to benefit the buyer, however if a buyer is willing to waive contingencies such as a home inspection, this will benefit you. The fewer  contingencies you have, the lower the chances will be that you will have problems down the road in the selling process.

Multiple offers are a seller’s dream. Be sure to consider these factors if you find yourself executing a bidding war. To best prepare yourself for the selling of your home, begin by utilizing a seller closing costs calculator to have a better picture of what to expect throughout this process.

Sarah Ammely

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