How to be a smart seller during a multiple offer market
When you start the process of selling your home, though, you have to make a shift in
your perception. This is business, and you are selling a product in a larger market that
will dictate much of your decisions. You can choose to ignore the market, but to do so is
risky, and a decision most people end up regretting. There are many risks of pricing
your home too high the most important being the fact you will sell it for less than if it was
priced appropriately!
Why Home Buyers Don't Make Offers on Overpriced Listings
They don't want to offend the seller. It goes against human nature to offer
substantially less than asking price to a seller. It's insulting to the seller and
embarrassing for the buyer.
Buyers erroneously believe that the seller knows the home is overpriced. They
believe that if a seller would be willing to sell for less, the seller would simply
lower her price.
Buyers also assume that the seller must have turned down low-ball offers from
other buyers because surely someone, somewhere along the line, had offered a
reasonable price to the seller. But many times, there are no offers at all.
How to get those Multiple Offers and choose the right one
If you’re dreaming of a quick sale, listen to your Realtor regarding the current
market value when pricing the home. You are actually more likely to get multiple
offers if you price your house correctly than if you over price it. Buyers may be
willing to pay more than asking price, but they want it to be their move and based
on other buyers also placing bids. Most buyers will run from any bidding war if
they think you already overpriced the house.
Look at each offer carefully. Not all are created equal. Just because someone
offers a few thousand more doesn’t mean their offer is the one to pick. Things
like being prequalified and the type of loan can affect how solid that offer is.
Another thing to weigh is if one buyer has to sell their home before you can
close, versus a buyer who can close in 30 days. Let your real estate agent advise
which is really the best offer.