We are still experiencing multiple offer situations on many homes in the Pittsburgh real estate market. Depending on the price range, condition, and location, buyers are heavily competing with each other to win the bid! Most sellers think it is a dream come true until they sit down to evaluate the offers. It can get confusing and overwhelming.
You will need to evaluate each offer with your real estate agent to find one that will be the best fit to meet your goals.
Highest isn’t always best! The best buyer isn’t always the one offering you the highest price for your home. There are many factors to consider.
- Mortgage – The type of mortgage the buyer is qualified for may have stipulations that may not be ideal for you. Your real estate agent can walk you through the differences in loan types and terms, which may include seller assist.
- Appraisal – If the buyer is offering over asking price, does your agent feel the house will appraise at that price? Another negotiation can ensue when a home doesn’t appraise for the sales price. Did the buyer’s offer include an appraisal contingency? Is the buyer ready to pay any difference between the appraised value and the agreed-upon sales price? Will the type of loan the buyer is pursuing allow them to pay over the appraised value?
- Qualification – Most offers are accompanied by a pre-approval or a pre-qualification letter if they are not purchasing with cash. A pre-approval is a step above a pre-qualification. The lender has reviewed the buyer’s income, assets, credit history, rental history, and debt. The lender verifies employment and does a thorough check to be sure the information provided is factual.
- Contingencies – There are several types of contingencies that you will find in an offer to purchase a home. Inspections can include home, pest, radon, camera sewer, and several others. There is a contingency period or time frame that the buyer agrees to complete the inspections within. Your home will technically be off the market during the inspection phase. If you cannot come to terms, that is lost time marketing your home, and the other buyers may have moved on. The other two common contingencies are related to the buyer’s financing. A mortgage contingency and an appraisal contingency are common in any offer where the buyer is seeking financing.
- Communication – Being open with potential buyers is an act of good faith. If you have received multiple offers, you want to be sure the buyers know you are considering their offer to be their “highest and best.” Set a date and time for all offers to be received and reviewed and be sure your real estate agent communicates this to all interested parties. After selecting the winning bid, be sure your agent works with the losing bidders to see if they are interested in keeping their offer as a back-up offer should the winning offer fall through.
Multiple offers should be an ideal situation from the seller’s perspective. Without an experienced and competent agent, sellers may find it overwhelming. The buyer may experience buyer’s remorse during the contingency period for fear they are overpaying for the home. Having the right agent working with you through this evaluation phase can help you avoid some common pitfalls.
I have been in the thick of this hot Pittsburgh seller’s market and have over 17 years of valuable experience to guide you through any multiple offer situation successfully. I offer a free consultation to discuss the home selling process and to determine the fair market value of your home. I am ready to answer your questions and help you plan your next move. Contact me by phone at 412-848-3907 or email at email@example.com.