Housing inventory remained limited in many areas, continuing the competitive bidding we have seen across much of the market in recent months. In Coachella Valley on September 1st there were only 1,959 homes for sale.
More and more homes we listed are attracting bidding wars. It’s a good problem to have if you’re a seller but there’s one more thing to think about: How Do you pick the best offer?
Most people think highest price, right? Not necessarily. While money is a major consideration, we are counseling our clients to look at a variety of factors when entertaining multiple offers. And here are the most important points to look out for:
Blind offer is an offer that the buyer hasn’t actually seen the property. This is a very common tactic by Real Estate investors. They may offer the highest offer, knowing that they could re-negotiate the sale price or cancel the transaction after the interior inspection. Require that buyers (or Buyers Agent) see your property prior to submitting an offer. We use electronic lockboxes which show a showing history and also request agents to leave cards and client feedback.
Look for an offer with an appealing closing date that has little to no contingencies. By waiving their contingencies, buyers have fewer “outs” and a deal is more likely to sail through the process. If you have a buyer asking for a contingency to keep the deal open until their other property sells, this is an easy option to eliminate.
Know how much earnest money each buyer is offering, this shows how seriously committed your buyer is. Are their finances coming from a stable and secure lender? Have they been pre-approved for a mortgage? Making an offer that’s $5,000 higher but the buyer is using an out of state lender you’ve never heard of might be risky, But if they’re a strong lender you or your agent has worked with before, the extra money could be worth your time. Also, while you might be dismissing a higher offer, remember that cash is still king. they can make the process easier since there will be no need to wait for a loan approval and you may not need an appraisal.
There’s nothing more exciting than getting several offers when selling your Coachella Valley Home. There’s no magic formula to select the Best Offer. You need to sit down and go through the terms carefully, remember to trust your instincts and your real estate agent, and pick the offer that feels right for you.