“Show me the money!” This famous quote from the movie Jerry Maguire could apply equally to the real estate market, especially as buyer demand begins to heat up. High demand and low supply put you in a solid position as a seller. Often, you can choose from the best of multiple offers. And there’s no way around it. The potential buyer who offers the most money will likely be the one you choose. 

As much as you might like to be altruistic and select the buyer with the young family that needs a home the most, you also have to be practical. In a tough market, you need to earn a top dollar to have the financial resources to take the next step in your life. That said, money may be your top priority when evaluating offers, but it’s not the only one. Here are just a few things to keep in mind should you receive multiple offers when selling your home. 

A Look Beyond the Money

What else matters beyond the bottom line? The highest dollar amount may be enticing, but asking a few questions first can save you a lot of headaches. For example, has the buyer received a pre-approval from a lender that they can obtain the financing they’re agreeing to?

Few things are worse than having a transaction fall through at the last minute because the buyer didn’t qualify for the amount they were sure they were entitled to. If this happens, it’s not all bad. You’ll likely get to keep the deposit for your inconvenience. But is it worth the time and hassle of delaying your plans while your house goes back onto the market?

Another question to ask is how the amount offered compares with the fair market value of your home. Many buyers overlook this in their eagerness to place a winning bid. However, lenders typically will not provide more funding than the house is worth. 

Even if a potential buyer qualifies for financing, they will have to make up any difference between the appraised value and what they’ve offered in cash. 

If they are able to do so, you’ve got yourself a successful sale at a price you are sure to celebrate! If they can’t, then it’s back to the drawing board. In that case, it might be better to accept an offer that’s more of a sure thing, even if it is slightly lower. Appraisals are a complex subject that often trips up both buyers and sellers. It’s best to draw on the experience and expertise of a local real estate agent to help you navigate these pitfalls. Let’s take a look at some other reasons you may not always gravitate to the highest offer.

It’s no secret that you’ll get the best results when your home sparkles and shines. What upgrades have the most impact? Find out in the resources below:

• Minor Upgrades, Maximum Results
• Worth It or Not? What Renovations Really Help When Selling Your Home
• The Power of Staging When Selling Your Home

All Cash – No Contingencies

Imagine this scenario: You’ve listed your house for sale, and the offers start pouring in almost immediately. All are good, but your top offer comes in way over your asking price. The catch? It’s a conditional offer based on the buyer being able to sell their existing home and obtain sufficient financing. If either condition fails to materialize, the buyer can back out with zero consequences.

And now, picture this: You receive a cash offer with no conditions. The amount is a few thousand dollars less than the preceding offer. But is the ease and certainty of the transaction worth the slight difference? Some homeowners will hold out for the highest amount possible. Others are happy to take the easier path so they can move on without fuss. There is no right or wrong answer. Your decision depends on your goals and how involved you want to be.

The Appeal of Flexibility

Financial matters aside, selling a house can be a stressful time. Once you accept an offer, the countdown begins as to when you must be out of the house. The clock is ticking, and packing isn’t the only task on your to-do list. You’ve also got to find and secure a new place if you haven’t done so already. 

Now imagine you’ve found a buyer who didn’t necessarily offer the most money. Instead, they’ve offered something else of value: flexibility. Suddenly, the pressure is off, allowing you extra time to find a new place that’s just right for you. This is one more scenario where you might sacrifice a little bit of money for peace of mind.

Selling a house isn’t just about the money. Often, it’s also about the legalities. The following resources will help you stay on the up and up:

• What Real Estate Lawyers Do
• How To Negotiate A Real Estate Contract
• Selling a Home for Someone Else? Here’s What You Need to Know

An Emotional Connection

If you’ve owned a home for any length of time, you have undoubtedly received one of those letters from a potential buyer pleading with you to sell your home at a steep discount. These messages are cleverly designed to tug at your heartstrings, but an emotional appeal from a complete stranger isn’t likely enough to convince you to pack up and move. 

An emotional connection might matter when it comes to a family member or younger relative that you want to help. In that case, you might consider taking less money even though you could earn more in the open market. Whether you decide to do so depends on your own financial stability. Helping out a friend or family member may be a noble endeavour, but there is no reason to sacrifice your own future or well-being.

The bottom line is that selling a home is and always will be an emotional experience. However, it is still a transaction and you can’t lose sight of your goals. Remember that the more successful your sale is, the more empowered you will be to make your next move. Only you can decide what terms are necessary for a seamless transition to this new and exciting chapter in your life. 

Whatever your next step may be, we are committed to helping you achieve the best possible outcome when selling your home. Do you have questions about our process? Reach out to us right here or call 905-332-9223 to connect with us today.