Right now, there is a real estate boom happening all over the country. Demand for homes is very high, making it a total seller’s market.
Median home prices all over the U.S have been rising, and buyers are very motivated due to low-interest rates. For sellers, this means that it is a great time to sell and get a really good offer.
In fact, if you are a seller it is very likely that if you put your home on the market, you will get several offers and start a bidding war.
This is because, in a lot of markets, there is not enough housing inventory to meet the demand. Therefore, there is a lot of competition amongst buyers.
But once you start a bidding war, how do you choose the best offer? Keep reading to learn how.
Set a Deadline for the Bidding War
In a strong seller’s market, your home might be viewed many times, so many offers might roll in. Therefore, setting a deadline is important for you to have enough time to consider all of the options.
Setting a deadline incites a sense of urgency in the buyers, which means that you will get serious offers from genuinely interested buyers. In addition, having all buyer bids roll in within the same time period will allow you to review and compare all the offers.
This can help you make a better decision faster because you won’t be caught up in the “what ifs” of waiting for a better offer to come in.
Review and Understand the Contingencies in Each Offer
A lot of times, buyers will have contingencies for the sale, and understanding these is crucial to make sure you are getting the best deal as a seller. If you accept an offer with lots of contingencies, you will not get paid until after the conditions are met.
Common contingencies include the home inspection, the appraisal, and sometimes even upgrades. Some contingencies can become risky for sellers. Therefore, it is important to work with a realtor or real estate professional to make sure these won’t affect the sale.
Know What a Good Offer Looks Like
When reviewing the bids, you’ll want to fully understand what a genuinely good offer looks like. These are some points that contribute to a good offer:
- The buyer has been pre-approved for a mortgage loan or has proof that they can purchase the home with cash
- The buyer has presented contingencies that you and your agent believe are fair
- The actual monetary offer is within your expectations as a seller
Doing research on pages such as the Best Offer KC blog is a great way to understand the real estate market and know what to look for in an offer.
Be Ready to Accept the Offer
If you decide that one of the offers presented in the bidding war is good enough for you, be ready to accept it! Selling a house is a big deal, and walking out with the right offer is something to be celebrated.
Want to learn more about real estate? Check out our blog for more tips and advice.