How to Choose the Best Offer in a Bidding War

It’s often said that there’s no such thing as a sure thing in life, and that adage is especially true when you’re selling your home. Even in a seller’s market, you may find yourself in the midst of a bidding war for your property. So how do you make sure that you go with the right bidder? Here are four tips to help you choose the best offer in a bidding war!

1) Consider the Offer Price

Of course, the price is one of the most important factors to consider when it comes time to choose the best offer. It’s easy to get excited by a high initial offer, but don’t forget to take a close look at the fine print.

Make sure to consider any additional conditions or requests by the buyer that could affect the offer price. You may also want to investigate the buyer’s finances to verify that they have sufficient funds to back up their offer.

2) Evaluate the Buyer’s Motivation

When choosing between multiple offers, it’s important to identify the buyer’s motivation for making an offer. Is the buyer eager to move quickly, or are they more flexible about the timeline? Are they looking for a bargain price, or are they willing to pay market value for your property. These factors can help you determine which offers are more likely to close.

For example, if you have multiple offers with the same offer price, but one buyer has a shorter timeline and fewer contingencies, that could be an indication of stronger motivation to purchase your home.

3) Consider the Terms of the Deal

Besides the offer price, you should also take a look at the terms of the deal. Are there any special contingencies or requests from the buyer? Will they be paying cash, financing or a combination of both? How quickly do they need to close? These factors can impact your decision and should be considered along with the offer price.

Let’s say, for example, that you are presented with two offers that have the same offer price, but one buyer is asking for seller-paid closing costs and a longer timeline to close. That offer may be less attractive if you are looking to expedite the sale, whereas a cash offer with no contingencies and a shorter closing timeline could be more attractive.

4) Discuss With Your Real Estate Agent

When making such an important decision, it’s always a good idea to consult with your real estate agent. They will be able to provide professional advice and insight into the offers you are considering, helping you select the right bidder for your property.

Your real estate agent can also provide market intelligence to help you establish if the offers you have received are in line with other properties in the area. This can be invaluable in determining which offer is the best for you.

The Bottom Line

Having to choose the best offer in a bidding war can be a difficult and stressful process. By considering the offer price, evaluating the buyer’s motivation, looking at the terms of the deal, and discussing with your real estate agent, you can make a more informed decision about which offer is right for you. Good luck!

Still looking for the right real estate agent to help you sell your home? We’d be happy to help! Click here to get in touch with Hawkins/Ryerse Real Estate Group, and get started today.