In today’s fast-paced market, a strategically priced home could easily receive multiple offers and even spur a bidding war between homebuyers. If your home has received multiple offers, there are several ways to make the situation work in your favor.
Consider these tips when negotiating multiple offers to maximize your profit on your luxury home.
Make a Counteroffer
After evaluating the offers on the table, start your negotiations by asking your agent to make counteroffers to each buyer. Be sure each buyer is aware that multiple offers are on the table and acceptance of your counteroffer doesn’t guarantee that the home is theirs. Issuing a counteroffer to each buyer will not only help you negotiate a better price for your home, but it will also force buyers to compete, making it important for them to either agree to your terms or present their best offer to you during negotiations.
Ask for Best Offers
If issuing a counteroffer doesn’t appeal to you, consider making the buyers do the work by asking for their best offers. When you realize that you’re going to be entertaining multiple offers on your home, ask your agent to notify buyers’ agents to give their client’s best and highest offers by a certain deadline. Asking for their best offers will force all interested parties to immediately tell you the highest price they are willing to pay for your property. After you hear each buyer’s best offer, you can begin negotiating with the top bidder. And if your negotiation somehow falls apart before a deal is set, you’ll always have backup offers to fall back on.
While it’s tempting to take the highest bid offer and run with it, it may not be the best option. When all offers have been submitted, ask your agent to confirm that each loan is pre-approved and make sure there are no financial red flags with each buyer. In addition to looking at the type of loan each buyer brings to the table, your agent can discuss the pros and cons of each financial option on the table. While an all-cash offer is ideal, buyers with loans shouldn’t be discounted. After looking into the loan types of each buyer, it’s also a good idea to look at how much the buyer is putting down on the home. A higher down payment can give you a peek into the financial situation of each buyer, making it easier to identify which buyers will have more loan options available to them.
Connect with Your Buyers
If you have a connection with your home and are particularly interested in who purchases it, ask your buyers to submit letters from the heart. This tactic will give you a more personal look into each of the buyers and their motives behind purchasing your home. These letters will also help you make a stronger connection to certain buyers, which could tip the scales in their favor if the other financial factors haven’t persuaded you.
All in all, this is a moment to realize you are in an enviable situation and your home will be in good hands no matter the what factors you eventually consider in the choice you make.