The Diva Team Prep on Offer Day: We go through all of the offers to make sure they are legitimate contenders, all of the paperwork is in order, everything is properly signed, and the buyers have real financing and/or if a cash purchase – proof of funds. We call the lenders and/or asking for verification of funds to close for any cash offers. Next up we will be inputting the offers into a spreadsheet so seller can review the terms in an easy to consume manor.
Diva Team’s Primary Goal For Multiple Offers:
Get the buyer who is willing to pay the best price possible AND close the transaction as easily and quickly as possible. There is a frenzy in this market
. We have seen multiple offer situations go bad because the “winner” gets cold feet. The seller is suddenly faced with multiple offers to suddenly scrambling for one decent buyer. So in addition to offer price, we advise the seller to review the offers closely and choose the buyer who they feel is most motivated to purchase the home and close the deal with minimal stress and problems. Bottom line – who is going to pay the most for your home and cause least amount of issues closing the transaction?
Ultimately the seller can choose whichever offer is the best for them and their needs!
How The Diva Team Rates Offers During Multiple Offer Season:
- Financing – How much are the buyers putting down, who are they pre-approved with for financing, and can they CLOSE on this house based on their offer terms.
- Timelines – A buyer with really long timelines on the inspection, title review, and other items may be either -less motivated to close the deal or have an unseasoned agent as their representative. From our perspective, we prefer to avoid long timelines since they drag out the process unnecessarily.
- Letter From the Buyer – Does the buyer love the house? If yes – then they are probably more likely to work through any situation to close the house. But – the seller must be careful in this situation since in no way can they use any information that buyer has given to openly discriminate against them for any reason.
- Offer Price and Escalation Clauses – Although we encourage our buyers to come in strong from the start on an offer during a multiple situation – we understand that some buyers are more cautious. Ultimately, we rarely advise our sellers to discourage the use of an Escalator Addendum during a multiple offer scenario but there are times when “highest and best” offers might come into play.
Read more about what we send to our buyers before we submit an offer during multiple offer season >
How does the Escalation Clauses Work? – The escalation addendum is a relatively new addition to our processes. Basically – here is how they work. Buyer A offers $401K but is willing to do $1,000 more than the next best offer up to $425K. Buyer B offer $405K but is willing to do $1,200 only up to $415K. The winner would be the first buyer at $416K ($1,000 more than the next best offer of $415K.)
In the end – it is our seller’s decision to sell their home to whomever they want – as long as they do not violate any fair housing laws
in making that decision. Meaning if you like buyer “Sam” because they have a dog and you love dogs – you can sell your house to “Sam” regardless if they had the lower offer than buyer “Sue” who does not have a dog.
Hope this helps you to be the top seller on your block!