This means war!

How to han­dle mul­ti­ple of­fers

The Hamilton Spectator - - REAL ESTATE -

Your home has been a vir­tual Grand Cen­tral Sta­tion of ac­tiv­ity since be­ing listed in this hot-and-heavy seller’s mar­ket. In­ter­est in your home has been high since the get-go and now you’re faced with what some con­sider the holy grail of real es­tate sce­nar­ios - mul­ti­ple of­fers.

Nat­u­rally, you should go with the high­est bid­der. But wait. That of­fer - while crazy-high at thou­sands more than your ask­ing price - is con­di­tional on fi­nanc­ing, a home in­spec­tion and the buyer sell­ing their home. While the money is at­trac­tive, you’re ques­tion­ing whether you should ef­fec­tively take your house off the mar­ket while wait­ing for the buyer to firm up. Those con­di­tions make it much less ap­peal­ing than the com­pet­ing prospect that came in with no con­di­tions, al­beit at a lower price.

SO, WHAT IS A SELLER TO DO?

That de­pends on you and what’s most im­por­tant. If it’s money, you have your an­swer. If you need a firm clos­ing date, then you need to go with the of­fer that lines up with yours. Per­haps you’re more com­fort­able with the buyer who put down a de­posit of $5,000 com­pared to the one who wrote a cheque for $1,500. An of­fer to pur­chase with more money is def­i­nitely at­trac­tive, but if their terms don’t meet yours, a lower-priced of­fer with fewer strings may be best.

When more than one of­fer comes in, you gen­er­ally have one of three op­tions: ac­cept one of the of­fers be­cause you like the terms, counter one of the of­fers and change those terms that are not ac­cept­able or you can ask the bid­ders – whether there are two or 17 – to im­prove their of­fers. But be warned: this fi­nal tac­tic can leave you high and dry if all bid­ders back off.

In the end, you need to de­ter­mine what is more im­por­tant and what you’re most com­fort­able with. A riskier yet high-priced of­fer that could fall through be­cause of con­di­tions or a lower-priced of­fer that’s a sure thing? You de­cide. (RMM)

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