Your House Has Multiple Offers. Now What?

If you find yourself with multiple offers on the home you're selling, how do you choose the best one for you? It's not always just about the highest dollar amount.

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I wanted to give some quick advice to home sellers who have received multiple offers on their home.

Say you put your home on the market, you did all the marketing correctly, and you find yourself with three offers. Is the highest offer always the best?

In a really hot market in some areas or Phoenix, some offers may even be over list price. The problem is that an offer over list price may not appraise, which could cause issues in the future.

The key is to take the highest offer that will appraise.

What else should you consider besides price? Well, there are always different terms and concessions in an offer. Is the buyer asking you to pay for a home warranty, closing costs, or HOA disclosure fees?

"You want the highest offer that will appraise."

You also want to look at the strength of the offer.

Is it a financed offer or a cash offer? Sometimes cash is better, but sometimes cash buyers want a discount. If the offer is financed, how much money is the buyer putting down? With an FHA loan, they could put down as little as 3.5% or they could put down as much as 20%.

Finally, you want to look at earnest money from the buyer. How much skin in the game did the buyer put out there to show their good faith in the contract?

When choosing an offer, you want to the pick the offer that is the strongest and has the best chance of closing. It's not always the highest price that gets you to that point.

If you have any questions about selecting an offer or you have questions about the Phoenix real estate market, give me a call or send me an email. I'm always here to help!