by Janet Nettles, Middle Tennessee Properties
Sellers are now getting multiple offers on their properties. There is more to multiple offers than sales price. Sometimes sellers will take an offer that is lower in price than the next because of the terms. The offer might have an earlier closing date or better financing, or even be a cash offer.
One of the most important things to remember when buying a new or existing house is that it is a business transaction. It doesn’t become your home until you close. The same is true for the seller; while it has been your home, it now a business agreement.
When working with multiple offers there are several things to consider:
Are the buyers prequalified for a mortgage? If so, is the company local, or is it an internet mortgage company? Does the buyer have a letter stating they are qualified for a loan, and if so, does the letter have contingencies? Does the buyer have to do certain things in order to qualify for the loan? This is where a realtor can help.
Both sides of the transaction should ask questions. What is most important to the seller price or closing date? The seller might consider a lower price in order to stay in the house a few days after closing. Or, the buyers might offer a higher sales price in order to move in before the closing date.
Knowing in advance what is important to both parties can make a deal go more smoothly.