Here’s how to narrow down your choices when receiving multiple offers.

We’re in a hot seller’s market right now, which means you’ll likely see multiple offers when you decide to list your home. I’ve heard of some properties getting over 30 offers in our area, which is astronomical. With so many options to choose from, however, things can quickly get tricky—especially when many offers seem strong. Fortunately, there are a few factors that can help you narrow down your choices.

First, you’ll want to evaluate the buyer’s purchase price, close of escrow, and release of contingency dates. The contingency dates refer to when a buyer can no longer back out of the escrow, which gives you confidence that the sale will move forward.

“You want to find out more about each buyer—particularly, you want to learn their motivation for buying your home.”

Next, you’ll want to evaluate their financing. You need to see their proof of funds, including the amount they’ll put into escrow, earnest money, and the down payment. It’s also helpful to know what type of financing they’re using, such as cash or a VA, FHA, or conventional loan. These can influence how they purchase and close on your home.

After you’ve organized your offers and ranked each one using these criteria, have your agent talk to the agents representing the top two or three offers. You want to find out more about each buyer—particularly, you want to learn their motivation for buying your home. If you learn one buyer will be out of their home in a couple of weeks, for example, you know that they’re motivated. 

Lastly, you can evaluate your personal preferences and figure out which offer works best with your wants and needs. Maybe you want a shorter or longer closing date, or you want to stay in the home for a bit longer and pay rent. These are things you can negotiate by making a counteroffer that better suits what you’re looking for. You’ll quickly find out who’s willing to work with you and who’s not.

It can be daunting trying to figure out which offer to choose, but hopefully, these tips have given you a better idea of where to start. If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.