How to Handle Multiple Offers As an Irvine Seller

Frank Agahi Real Estate Podcast

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We are in one of the most active real estate markets that we have seen in recent years. Right now, it is very common to be involved in a multiple offer situation when buying or selling. As a seller, there are a few things you need to do to select the best offer.

Obviously, the first thing you should look at as a seller is price. The higher the price, the better your bottom line is. However, price is not the only factor you should consider. You also need to evaluate the terms and conditions in each offer in order to determine which is highest and best.

For instance, one condition you should pay attention to is financing. There are many different types of loans: government loans, conventional loans, and other programs. Pay attention to loan-to-value ratios, down payments, and the buyer’s ability to obtain a loan.

If a buyer is obtaining a loan from a local lender, you can verify the information consistently. It’s more difficult to keep track of the information when a buyer uses an out-of-state, online source.

You also need to evaluate the buyer’s source of funds. Find out if the buyer’s funds are viable and readily available, or if the funds are contingent upon the sale of the buyer’s home. The buyer may even need to transfer funds from another country.

"Price is one of the most important factors to consider."

Pay attention to things like inspections, appraisals, and loan contingencies. The buyer will ask for a certain amount of time to satisfy these conditions, meaning they will have a set number of days to order the inspection and the appraisal. As a seller, it is advantageous to you to have a shorter time period in order to reduce your risks.

You should also consider whether the buyer is able to close escrow at a time that is agreeable to you. Maybe you need to close quickly, or maybe you need some time to find your next property.

Finally, figure out if there is a way to add value to the offer. For example, you might need a rent-back. You could also get the buyer to remove some - or all - of the contingencies. That way, you can sell your home without needing to worry about the inspection or appraisal.

Look out for Part Two of our series - we will discuss how to handle multiple offers as a buyer. If you have any questions in the meantime, give me a call or send me an email. I would be happy to help you!