Since, right now, sellers are getting multiple offers on their properties, The OC Register has published an article titled “How to deal with a bidding war.” This is extremely fitting in this market since most sales are leading to bidding wars.
Southern California has not experienced such low inventory rates since 2004, per the California Association of Realtors, however, demand is extremely high.
Normally, a seller would have to make some efforts to upgrade, clean, maintain and so on to make the property more attractive and increase their chances of selling. In this market, however, even with no efforts a seller is bound to get multiple offers. Obviously, the offers will be much higher on a property that is well maintained, upgraded, and cleaned up.
Selling with multiple offers is a seller’s dream, but it does mean you will have to put in time to weed through the offers and find the best one. Making a pros and cons list, spreadsheets, and consulting with your realtor every step of the way should be your first plan of action.
Selling to the highest bidder is not always the best option, one buyer might have a slightly lower offer but their case for a smooth and quick worry-free deal might be stronger than the buyer offering up the most money. There are many factors to consider when picking between offers, you should look at their entire financial package, including purchase price, down payment, loan amount, credit history/score, length of escrow and whether their offer depends on their success in selling another property. You should also look at any other contingencies or requests they have.
Understanding all the contingencies, timelines, hidden issues with finances, and so on can be tricky sometimes. Using Amin Vali Real Estate Investment as your guide and fiduciary (legally obligated to act in your best interest) can help you make the best choice.