Choosing From Multiple Offers

The amount of the offer is important, of course, and when buyers bid high, you want to make sure they’re qualified. Asking for a sizable earnest money deposit will help discern which buyers are serious.

If bidders require financing, the reputation of their lender can be an important factor when weighing offers. If the lender is known for delays, you may want to consider another offer.

Many buyer’s agents in low-inventory markets, where bidding wars are common, advise their clients to waive contingencies and other items to make their offers more attractive. As a result, sellers may be better off considering lower bids when they come with fewer strings attached.

Carrie Pierce-Johnson, a sales associate with Coldwell Banker Danforth in Seattle, says she suggested that a recent client, who had six offers, turn down the highest bidder, who didn’t waive the appraisal contingency. Such a contingency means that if the house appraises below the offering price, the buyer must make up the difference in cash—which could derail the sale. Pierce-Johnson’s seller avoided that risk by accepting a cash offer that was $10,000 less but bypassed the need for an appraisal.

Sellers in multiple-offer situations have numerous considerations to sort through. As you go through the pros and cons of each offer make sure you accept the best deal for you.