When a seller receives multiple offers on a house, the offer that ultimately wins is the one with the price, terms and closing timeline that match what the seller wants. But there are many variables and each situation is different. When representing buyers, I work with my clients to identify the best strategic approach that will give them the competitive edge to get the home they want. When representing sellers, I work with them to get the best price.
A seller with multiple offers can proceed in various ways. The seller can simply accept the highest or best offer, or the seller could inform all potential purchasers that other offers are on the table. This may result in a bidding war.
A seller is more likely to choose your offer when it has solid financing. As a buyer, make sure you are pre-approved by a mortgage professional. Check your credit reports for errors. If you don’t have your financials in order, you risk not appearing as qualified as other potential buyers. Opting for conventional financing also helps.
Ultimately, matching what the seller desires in price, terms, and closing timeline will speak loudly when you make an offer. An experienced real estate agent can help you find out which terms matter, including what price to offer; whether you should make your best offer up front or start lower, leaving some room for negotiation. You might gain an advantage by showing flexibility about the closing date. During negotiations think carefully before asking for a price reduction or credits after an inspection as the seller might opt for another offer.
When purchasing or selling a home, you need to be ready for anything. It is important to have an experienced real estate professional on your side.