When it comes to offers on your home and considering which of two or more competing offers to accept for your home, there is no doubt that price plays a huge role! After all, if Offer #1 is $10,000 higher than Offer #2, that’s an enticing difference that puts thousands of extra dollars in your pocket. However, price isn’t the only thing you should think about when comparing multiple offers. There are other factors you need to consider as well.
For example, what conditions are in the offers? If Offer #1 is conditional upon the buyer selling his/her current property for a specific amount, then what if that doesn’t happen? You could end up with an offer that dies and be forced to chase down the previous buyers that were interested in hopes that they haven't bought already!In these circumstance, accepting the lower offer may be your best move.
There’s also financing to consider. Are the buyers fully approved? If you get an offer where the ability of the buyer to get financing is in doubt, that’s a huge red flag.
The closing date is another important factor. Offer #1 might propose a closing date that’s perfect for you, while Offer #2 is four weeks later or possibly they want a really quick close and that may not work best for you. If you’ve already purchased another home, you might require a month of bridge financing if you accept Offer #2. There’s nothing wrong with that per se, but the costs and additional hassle are factors you would want to consider.
Assessing competing offers is where I come in! Fortunately, as your REALTOR®, I will guide you toward making the right decision. If you or someone you know is thinking of buying or selling a home, I'd be happy to help!