Enjoying the dog days of summer? The local real estate market is just as hot, with sellers receiving multiple offers on their property - if the property is priced correctly. In some cases offers are coming in over asking price. This is good and bad news. Good news for sellers hoping to get the best price, but not good news for buyers, having to pay more than fair market value for a property.
As a seller you need to be prepared to handle multiple offers on your home. Discuss with your Realtor® how you might respond. Here are some options to explore:
Do not accept the first offer. Give your property time to benefit from the marketing activities.
If you get a great offer, which is significantly better than the other offers, take it. The term “Cash Is King” is so true when it applies to real estate. Be prepared; a cash buyer may request a quick close. As the seller, be ready to vacate the property in 30 days or less. Believe it or not, this is occurring in Cumberland County.
Reject all the offers if none of the offers, prices or terms are acceptable. Consider going back to all of the buyers who made offers and request their “Best and final offer”- including both price and term. This can reduce the time it takes to get a deal done as well as reduce your stress level.
Here is a thought: The highest offer may not be the best choice for you. For instance, an offer, which includes a contingency such as: the buyer has to sell their current home.
You may want to continue to market the property even if you are under contract. Why? What if the buyer backs out? Maybe they cannot get financing or the home inspection identifies major problems and the buyer wants you the seller to make the repairs or significantly reduce the purchase price.
As a buyer be prepared to view homes and make an offer on a home with multiple offers. Begin by doing your homework!
Review a market analysis with your Realtor® including properties sold, pending, new listings, and recent price reductions.
Consider developing a wish list of what your property should include and be prepared to move quickly. Some properties are going under contract in less than 24 hours of being listed.
Get prequalified with your lender not preapproved. A prequalified letter from your mortgage lender validates your credit, income and employment history. This can take as little as one to two business days. When prequalified, you now have a ticket to the dance.
Finally, it is important to be well educated. Take time to become familiar with some real estate terms that you will likely come across. This journey may be stressful at times but have some fun! I would enjoy assisting you as you achieve your home ownership goals.
Kevin Ronan, Associate Broker affiliated with Alliance Realty, 290 Bridgton Road, and Westbrook, brought this article to you. He can be reached at 207-838-4855 or emailed at Kronan@alliancemaine.com