This is not exactly breaking news...it's a Seller's Market in the Denver Metro. Properties that are reasonably priced and aren't falling down are likely to get multiple offers. Awesome if you're thinking about selling your house, right?
Your home is definitely ahot commodity. But, as a seller, how do you know which offer is the right offer to take? Not all offers are equal. Here is how Live Urban agents evaluates multiple offers for our sellers. (And, by the way, Live Urban listings tend to sell really fast andbenefit from higher than average sales prices.)
On Offer Deadline Day:We gothrough all of the offers to make sure they are legitimate contenders, all of the paperwork is in order, everything is properly signed, and the buyers have real financing and/or if a cash purchase proof of funds. We call the lenders and/or ask for verification of funds to close for any cash offers. Next, we input the important offer details into a spreadsheet so that the seller can review the terms in an easy to consume format.
OurPrimary Goal ForMultiple Offers:Attract the buyer who is willing to pay the best price possibleAND close the transaction as easily and quickly as possible.There is a frenzy in this market. We have seen multiple offer situations end up with the home back on the market because the œwinner gets cold feet. The seller is suddenly faced withmultiple offers to suddenly scrambling forone decent buyer.
So, in addition to offer price, we advise the seller to review the offers closely and choose the buyer who they feel is most motivated to purchase the home and close the deal with minimal stress and problems. Bottom line who is going to pay the most for your home and cause the least amount of issues while closing the transaction?
Ultimatelythe seller can choose whichever offer is the best for them and their needs!
How WeRate Offers During Multiple Offer Season:
- Financing How much are the buyers putting down, who are they pre-approved with for financing, and can they CLOSE on this house based on their offer terms?
- Deadlines A buyer with really longtimelines on the inspection, title review, and other items may be either -less motivated to close the deal, or have an unseasoned agent as their representative. From our perspective, we prefer toavoid long timelines since they drag out the processunnecessarily.
- Letter From the Buyer Does the buyer love the house? If yes then they are probably more likely to work through any situation to close the house. But the seller must be careful in this situation since in no way can they use any information that the buyerhas given to openly discriminate against them for any reason.
- Offer Price and Escalation Clauses Although we encourage our buyers to come in strong from the start on an offer during a multiple situation we understand that some buyers are more cautious. Ultimately, we rarely advise our sellers to discourage the use of an Escalator Addendum during a multiple offer scenario but there are times when œhighest and best offers might come into play.
How does the Escalation Clause Work? The escalation addendum is a relatively new addition to our market. Basically here is how they work. Buyer A offers $401K but is willing to do $1,000 more than the next best offer up to $425K. Buyer B offer $405K but is willing to do $1,200 only up to $415K. The winner would be the first buyer at $416K ($1,000 more than the next best offer of$415K.)
In the end it is our seller'sdecision to sell theirhome to whomever theywant aslong as theydo notviolate any fair housing lawsin making that decision.
This is the hottest market that we have seen in the Denver Metro area in several years...and you need an agent who knows how to guide you through this entire process if you are thinking about selling your property or making a move of any kind.
Let us know if you need expert advice...we look forward to helping you to sell your home for top dollar and getting you a great deal on your next place!
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