2021 has been a crazy year for home selling. With mortgage rates still at record lows coupled with the current state of supply and demand, buyers are more than a little eager to close on the first “dream home” quality house they see enter the market. Even during the winter, when real estate typically cools down, the soon-to-rise interest rate has many buyers diving into holiday season home purchases with a level of competition rarely seen this time of year.
What does this mean for home sellers right now? You are likely to see between 2 and 5 buyer offers on your home within the first month of listing. In September, the average home seller received 3.7 bids on their home. Of course, only one can become the seller you choose, negotiate, and close with. So how can an earnest homeowner seller manage multiple bids earnestly and with good strategy?
Here at Path & Post, we can help you decide the right home selling strategy unique to your home, the buyers, and the bids you receive. Find out how you can make the best decision on who to sell your house to for the best price.
Home Selling Tips to Prepare Yourself for Multiple Offers
Know What to Expect in the Atlanta Market
Georgia’s rates are among the highest for multi-bid home sales in the US. Here in Atlanta, September saw the potential for 5 or more bids per home on the market. That’s a lot of bids! So as you prepare to list your home, brace yourself for a flurry of bids or a cascade of bids over the next month as buyers see, assess, and fall in love with your house.
Sorting Your Offers
Sort the Ready from Unready Buyers: Buyers in an intensely competitive market sometimes get over-eager and bid before they are ready – and before lenders are ready. One of the best ways to politely and strategically eliminate a few buyer candidates is to sort the financially prepared from the unready. Find out, by asking through your agent, which buyers have a pre-approved mortgage in the right price range ready to go, and who has bid without a backing lender.
Mortgage pre-approval is when a buyer pre-applies for a mortgage of the right size for their house-hunt. The lender then approves to initiate that mortgage as soon as they close with a buyer. Watch out for exceptionally high and competitive bids. Some buyers ‘outbid themselves’ without lender backing – backing they may not actually get.
Wait a Short While: It’s okay to mull over your offers and see if any better offers come through. Buyers do need a little time to discover and assess a home before they are ready to make a bid. Often, the first buyers are either very sure of what they want or will need a little time to inspect and go through with their bid. Later offers may be more confident and, if aware of the other bids, more competitive.
Consider Buyer Concessions: Buyers may offer pre-negotiation concessions along with their bid to make the cash amount more appealing. For example, they may offer to pay some or all of the closing costs. They may also offer a little lease-back time so you can finish moving out at a leisurely pace. Buyers who offer appealing concessions have an excellent agent advising them and are ready to make the sale profitable and easy for you.
What to Tell Your Multi-Bid Buyers
So how do you talk to your buyers to get the best price or choose the best offer? There are several home selling strategies you can use. You can choose one and decline other buyers, the most straightforward and most concrete path. You can negotiate with one buyer while putting others “on hold,” or you can ask all buyers to present their “best offer” if they are holding back. But there’s no predicting how your buyers will respond to being asked to wait or compete. Some will start a potentially profitable bidding war, but some may focus on other properties instead.
Your best approach is an honest one, and working with your agent for a best-guess strategy on how to manage your multiple buyers.
If you do ask buyers to provide their “best offer” or wait while you check out the current best offer, be genuine and kind. Don’t try to angle for a bidding war, and just let everyone know you’re trying to make the best decision and need all the information. This approach is less likely to turn buyers away and can help you shake out concessions, better bids, and patience.
Work With Your Real Estate Agent to Choose the Best Buyer
When dealing with multiple bids on your home selling, your best partner is your seller’s agent. They have the experience and expertise to know your options and help you navigate a potentially very tricky — and very profitable — situation. Your agent will guide you through identifying buyers without lender backing, buyers who truly love the home, and which bids offer you the best value between both selling price and buyer concessions.
Our real estate experts can guide you through multiple buyers and help you choose the best bids for your final sale. Contact us today to get started.