Home Seller: How can I get the most for my home in this market?
Jeff Hansen, Realtor in Colorado: Here’s how.
It is a crazy market out there! Crazier than I have ever seen in my over 22 years in the real estate business. You have heard the stories I’m sure. No inventory of homes for sale and tons of buyers. That means bidding wars- and they seem to get crazier by the week! If you are trying to sell a home right now, you have picked one of the best times ever!
Now, more than ever you need an experienced Broker to sell your home. Bidding wars are great and can benefit the seller wonderfully, if handled right.
Here’s what you must know. There are Realtors out there that have experience in handling multi-offer scenarios and then there are the ones that are intimidated by them and don’t know what to do if they must juggle 3, 5 and in many cases over 10 offers by buyers! You MUST align yourself with a broker that is skilled in taking on the challenging job to sort out the contract that benefits you, the seller, the most. How do you do that? Ask your broker this:
- What is your strategy if we are involved in a bidding war?
The answer should not be to take the first offer that comes in the door. The answer should be that they are being proactive to the scenario by setting I (delet thisI) a timeframe to allow for showings over a two to three day period and then provide a time for which each interested party can present their bid. This provides a fair playing field for those that may not be able to jump the second the sign goes in the yard. I have great buyers and usually the really good ones have jobs. This means they might not be able to leave that job at the beckoned call of a real estate sign. They have to wait until after work or even a weekend. So my advice is to give enough time to get those good buyers in the door.
- Ask your broker how do they determine the best offer.
The answer should not be the one with the highest dollar amount. I know that sounds weird, but the best offers sometimes aren’t the best price. What good is a high offer that has difficult financing attached to it, or even a contingency for the buyer to sell their existing home? A cash offer waiving the inspection and appraisal for thousands less could be the one that gets you to the closing table. Ask your agent their strategy to maximize your ability to close. This should involve the broker taking the extra steps in researching each offer by calling lenders, waiving inspections and/or appraisals, following up on the buyers’ ability to show proof of funds to close, etc. and then taking all of that knowledge and discussing with you what is the best fit for your situation. Make sure your broker understands that it is ultimately your choice which offer is best and not the broker’s.
- Ask your broker, How long have they been selling in your area? Do other brokers know you, respect you? How can I be sure?
I know that if brokers have a tremendously strong buyer and they are deciding between a couple of homes to make an offer on, these brokers will look at the listing broker to see if this is one that can be trusted to handle any scenario sent their way. Homes listed with reputable brokers make it to the closing table. Experience matters people! I cannot express that enough. You have to think ahead and be certain that your broker can get you to your goal.
This should get you going in the right direction. In this market it is very easy to have some fun! But don’t let inexperience take the fun out of it. Need more help? Contact me and I will be there. If your broker isn’t passing muster, others can… I can.
Happy house selling.
Here we discuss multi-offer scenarios on the buying side.