A Guide to Selling Your Home with Multiple Offers
While we normally think that there are two options of selling your home, there are actually three options to do it today. These three ways include selling it through a real estate agent the traditional way, selling it yourself through FSBO or For Sale By Owner, and more recently, you can sell your home to cash buyers. Today, homeowners have another prerogative and that is to offer their house for sale to multiple buyers, in order to try to get the best price offer for the house. If there are many interested buyers, it will give you an advantage since they would bid competitively hoping to sell-off one another.
The seller may thing that this is a good think having multiple buyers like Dan Toback real estate investor
, but it actually presents some disadvantages. 50% of buyers fall out when there are multiple buyers compared to a single buyer which only has a 10% fallout rate. This is due to the fact that buyers would initially be very aggressive to come up with a higher bid, but when emotions settle down half of these bidders will realize that they have overbid and they start to begin putting off the deal altogether.
However, there is a way to minimize that fallout and improve your chances of success in handling multiple cash offers for the sale of your house
. Having a manager present is the best way to handle the situation. Even if you have to sell it through an agent that has a different policy, it is still good to have a manager deal with it. You, the third party manager and the buyers' agents can discuss conditions while the manager supervises the multiple-offer process.
There is no legal liability to tell buyers about the contending offers but it is just unethical to disclose the content of the competing offer to others. Once the price is out, bidding war that often results remorse on the part of the bidder and a fifty percent chance of a fallout can be resolve by the manager by going through the files and asking all the buyers to bring back their best offer. This is your big leverage since managers can now study the interest of multiple buyers together with their ceiling price. with this the probability of closing the deal will be higher.
If you are not interested with a counter offer and receive a new offer from the same buyer that is better, then you simply need to wait until the first offer expires to take the better one. These types of negotiations are best done with the help of a manager. This way, you will come out with the best price offer for your house.
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