How to Handle Multiple Offers as a Seller

Selling a Bay Area Home? Get a free home value report
Buying a Bay area home? Search all homes for sale

We're seeing a lot of multiple offers popping up in the Bay Area. Almost every listing in the area is getting multiple offers, and this is especially true for our listings because we use a minimum-bid pricing strategy where multiple offers are common.

Buyers in this situation should know that cash is not always king. Sometimes a seller will want the most money, but you can beat out other offers with your terms and conditions. You could amend your offer in order to close faster, and you could offer to pay some of the closing costs. It's also helpful to write a personal letter explaining why you love the home and why your family deserves to win the offer.

As a buyer, it's also very important to be pre-approved when you make an offer on a home. This way, sellers know that you can actually afford the home, and this will make you stand out as a buyer. Sometimes if you're not pre-approved, you won't even stand a chance against other buyers.

Another thing you've got to know as a buyer is the difference between a lender's loan commitment letter and a loan broker's pre-approval letter. A loan commitment letter by a mortgage lender indicated that your home loan has been approved. If a loan broker says you are approved for a loan, but you haven't supplied any documentation, recognize that the broker is actually saying you are "pre-approved" for a loan, but have not yet secured it.

Now, as a seller, you can do a few different things in order to get multiple offers on your home. A pre-inspection is a good gesture towards buyers, and they'll appreciate it in the long run.

Once you do get more than one offer, be sure to pick the one that suits your needs the best. You may not need a ton of money for your home, but you may need to move out quickly. Whatever you need out of the transaction, choose the offer that best suits your wants and needs.

Thanks for tuning in again. If you have any questions about this, please don't hesitate to contact us. We're always willing to help you buy or sell in the Bay Area!