Right now, the market is completely in favor of sellers. Despite a recent up movement in mortgage rates, and a large shortage of homes. There is a home-buying frenzy. The increase in mortgage rates has not slowed down competition yet.
To be honest I don’t see it slowing down in the near future. With that in mind sellers are learning that sitting in the cat bird seat is not as easy as they thought.
Sorting through multiple bids can be difficult. Choosing the highest offer is not always the smart way to go. When receiving as many as 20, 30 or even 40 offers. Some sellers find it a little heart wrenching having to turn down so many people. Many of those offers come with personal letters depicting why these buyers love the seller’s home, and how this house with make a difference to the buyer’s family.
Getting inundated with multiple offers can be daunting. Some sellers may be distracted by what I call shiny baubles. What I mean is that the highest offer is not always the best offer.
For example, getting an offer that is $25,000.00 above list price, may seem like it’s a done deal. But if there are several contingencies then you should precede cautiously before accepting that offer. Another offer may come in that is only 10 or 15k above list. This is where the seller, and their agent should look closely at what the net figure will be. You should also pay attention to any contingencies that will help the transaction moving forward smoothly.
I believe the best approach in helping sellers determining the best offer for them, is to compare in a spread sheet format, so the seller can see how each offer stacks up.
By R. Jones
