Sellers are seeing multiple offers more frequently.
How many sellers would not want to be able to say "Give me your highest and best offer"?
But sometimes the highest may not be worth the paper it is written on!
Why? Because most buyers are financing. Financing requires an appraisal. Many buyer's agents make it a practice to include an appraisal addendum which basically says either appraise at or above contract price or I can walk.
Appraisal contingencies are not that uncommon. Most cash buyers I have worked with opt for an appraisal addendum as well. Who wants to pay more than a house is worth?
So how does a seller evaluate multiple offers? The most important advice I can give here is to evaluate the offers just as you would any other offer.
Here are two of the most important considerations with any offer to purchase your home.
- First and foremost, sellers know your bottom line. Know what is and is not negotiable.
- Remember the offer is often much more than the price. Read my thoughts on when the highest offer may not be the best offer. Remember terms define the real price.
- Be realistic with your offer. Make it an appropriate "lets talk offer" that, even if rejected, will result in a counteroffer.
- Your offer should include reasonable terms such as a defined closing date, reasonable deposit (escrow), appropriate support like a mortgage pre-approval letter at the time of offer.
- In a multiple offer situation which is becoming more common in Brevard County, consider including a letter to the seller explaining why you like the house so much. Whatever it takes to get the home of your dreams.
- Calling the listing agent will not result in a better deal for you. The agent works for the seller.
