In recent months, home sellers and the real estate agents that represent them have been entrenched in bidding wars. Homes have been going WAY over list price and very often, way over appraisal value. In Karen’s recent blog, How to Get Over Your Offer Being Rejected we offered advice for buyers specifically how to deal with not winning the war with your bid, and how to bounce back from that.
So this blog post is for sellers. In the current North Atlanta Real Estate market, some believe it’s a slam dunk for sellers, and that you are going to come out smelling like a rose, right? Not so fast. While it is certainly more preferable to be a seller in a bidding war as opposed to a buyer, there are some important considerations to make sure you come out on top.
The Highest Offer Isn’t Always the Best Offer
Crazy as it sounds, if the offer is really high it may make it difficult for the buyer to qualify for a mortgage. So when the offer is high, you must also evaluate the buyer’s qualifications and consider if their financing is likely to go through. Basically, even though the buyer is willing to pay a ginormous number, their mortgage company may not be willing.
Your Home Might Not Appraise for a Higher Price
We are seeing homes go well over appraisal value. If this is the case, the buyer must bring cash to the table to pay the difference between the loan amount and the purchase price. So again, can your potential buyer do that?
Contingencies to Contingencies
Karen can take you through all the types of contingencies so you are prepared and with her help can compare them.
There are Appraisal Contingencies, Financing Contingencies and Home Inspection Contingencies and they are all designed to let the buyer out of the contract. It stands to reason the “cleaner the contract” (less contingencies) the better the contract is for the seller.
The Art of Negotiation
Negotiations can mean thousands of dollars, so it is vital your agent knows what she is doing. An experienced, highly skilled negotiator like Karen is critical to get the best possible outcome.
Karen has seen some interesting things requested as concessions by potential buyers. Concessions like ALL the furniture, the heirloom grand piano, or even vehicles in the garage.
Obviously if all offers are pretty much equal, the number of concessions asked for in the offer, should impact the quality of the offer. Additionally, a high offer may look less attractive if there are a ton of concessions attached.
The other big impact concession is TIMING.
Offers come with a scheduled plan. If you need be out quickly, waiting till someone sells their home, may not be a good fit for you- even if it is the highest offer.
All this can be a little overwhelming that is why an award winning agent like Karen can guide you calmly and strategically through the process. Just remember everything is negotiable, and as the home seller you do have the upper hand in a situation with multiple offers.
Contact Karen today and rest assured you will be in great hands to guide you through the process and any wars that come your way! From Buckhead to Lake Oconee, Karen would love to represent you.
