If you're working as a listing agent in South Carolina, you may encounter situations where your client has received multiple offers on his or her home. If a house is in a prime location, has been well-maintained, staged well for showings, has a lot of curb appeal, etc., it's possible to get three, four or more offers in a short amount of time. Guiding a home seller through such circumstances is a service you can provide as a quality sales agent.
Of course, every home seller must ultimately choose which offer to accept. However, many clients will ask their listing agents for recommendations. This post shares information that may help a client determine which offer best fits his or her needs and ultimate home-selling goals.
Dollar amount matters, but it's not the only factor
A seller might be tempted to merely review multiple home offers from a financial standpoint only, then choose the highest amount. However, your client might have additional needs or goals in selling that should be factored in to determine which offer is best in his or her specific circumstances.
For instance, perhaps your client needs to be able to stay in the house for two or three weeks. On one hand, there might be a full price offer, but the buyer says the seller must vacate the property right away. Another offer might be a little under list price, but the buyer is willing to allow the seller up to 30 days more in the home. While one of the offers generates a higher profit, the other is a better fit for the seller's needs.
Contingencies are another key issue with multiple homes
It's not uncommon for buyers to attach contingencies to an offer. This basically means that they are willing to purchase the home in question if something is done, or not done. For instance, a buyer might place an offer that is contingent upon mortgage loan approval. Someone might offer a list price contingent upon the home appraisal price.
If there are multiple offers on a home with various contingencies, a seller must determine which offer best protects his or her interests. A seller who needs to go to closing quickly, for example, might want to accept an offer from a buyer who is pre-approved for a loan rather than one with a contingency for approval.
Do any of the offers contain an escalation clause?
An escalation clause is a real estate tool that is useful to buyers who are locked in a bid war. When an offer includes such a clause, it means that the buyer is willing to raise his or her offer above the highest offer in the bid war, up to a specific amount.
By providing experienced guidance and strong support to your clients as a listing agent, you not only increase their chances for securing the best deal possible but also the likelihood that your satisfied clients will offer referrals to their friends and family, which can help your business grow.