How to Evaluate Multiple Purchase Offers when Selling a Home in Scottsdale North
By Scott Gaertner
When selling your home, receiving multiple offers is the ideal situation. With fewer homes available in Scottsdale North, multiple offers are more likely than you might think. There are a few things to keep in mind when reviewing the offers.
The following tips will help you to evaluate the best offers and decide without emotion which offer is best for you.
Don’t get distracted by dollar signs. Often the highest offer isn’t coming from the best buyer. The ideal buyer has friends who live in the neighborhood or perhaps has secured a new job nearby. This buyer is likely pre-qualified by a great mortgage company, already working with a smart agent, and has been searching for the perfect home for some time. In Scottsdale North, many buyers have real cash to purchase and can provide proof of funds. These are preferred because we avoid the financing and appraisal contingencies. In a market as dynamic as ours, homes frequently will not appraise for the sales price. We have ways to mitigate these contingencies in financed offers too, but cash is still king.
Is Your Agent A Good Communicator?
Your agent should be communicating with all potential buyer’s agents. Their job is to inform them that there are multiple offers on the table and request that they provide their “best” offer. It seems like a no-brainer, but your agent needs to let them know what is most important to your specific needs. I am consistently shocked by how many agents write offers without even talking to the listing agent. This is not a good strategy for anyone. By contacting all offers, your agent can then coach the other agent on how to shape their offer to give their buyer the best chance of success. This also gives you the best chance for success.
Keep an Eye Out for Red Flags
Again, it isn’t always about the highest offer. It is important to know that the standard ARMLS purchase agreement has a 10-day inspection period which many buyers interpret as a “Free Look.” This makes offers where the buyers haven’t seen the home risk-free for them. Your agent should be able to ferret these issues out by talking to the offering agents.
The Contingencies (Buyer Beware)
There are several types of contingencies that sellers need to consider when selling their home.
Home Inspection: The most important contingency could easily be the home inspection. The buyer has a right to have the home inspected by a professional and do any amount of inspections within the designated time frame. If they find any needed repairs or replacements during the inspection, the buyer can request that it is fixed or that you cover the cost of said repair upon closing. These are becoming more contentious as buyers often feel they are overpaying for the home due to market conditions.
Appraisal: As I mentioned earlier with the quickly changing market in Scottsdale North, this can be a tricky piece of the home sale. If the appraised value of the home is less than the sale price, the buyer can back out of the deal or request that you lower the price of the house to meet the appraisal. A good local agent can give you a leg up when working with the appraiser, and with how to powerfully negotiate with the buyers.
Financing: As mentioned above, you don’t want to sell your home to someone who can’t pay for it. Your agent should be in contact with the loan officer to make sure the buyer is qualified and that the chances of any surprises are at a minimum. An experienced agent will know how to ask the lender the right questions to get as much information on the buyer as possible. They can also negotiate out much of the risk upfront and this is particularly true in the Scottsdale North market.
Have a Great Relationship With Your Realtor
When you work with our team, we will treat all other agents/buyers in the process with the utmost respect. We will be readily available for questions during the offer process, promptly returning calls and emails, and will be professional and courteous when notifying the parties whose offers were not accepted. Our team has established deep and strong ties to other agents in the markets we serve; we know that when ‘second opportunity’ scenarios arise, it can often hinge on how the losing buyer and buyer’s agent were treated when trying to put a second offer in place without having to relist.
Nobody sells as many Scottsdale North homes as we do. If you are ready to get started, call us at 480-634-5000.