Multiple Offers, Multiple Options!
The Reston real estate market is still smoking hot, despite the unprecedented times we find ourselves in due to the Coronavirus pandemic. Many lucky sellers find themselves sifting through multiple offers, while buyers increasingly need to come to the table with their best offer or some other accommodations to make their offer stand out.
This is not what anyone expected when the first stay-at-home orders began in March. However, according to realtor.com, spending more time at home has sparked buyers to search for new homes to meet their changing needs for extra space for school and work. Combined with record low interest rates, many are finding it an opportune time to buy.
High demand for homes with continued low inventory gives sellers the ability to command top dollar and still get multiple offers. According to Redfin, in the last three months, Reston sellers have retained this competitive advantage, with many homes receiving multiple offers and selling at their listing price or higher.
Here are some tips for both buyers and sellers to navigate their way around multiple offers in the current real estate market.
Competing Buyers, Put Your Best Foot Forward
If you are a buyer looking to beat out the competition, do what you can to make your offer stand out to the seller. Be sure to submit your highest and best offer, along with a mortgage pre-approval. Then see what else you can do to sweeten the pot. Can you increase the size of your down payment or pay for the home in cash?
A bid over the asking price will always get a seller’s attention, but it is not the only way to come out on top among other buyers. Waiving contingencies or agreeing to close on the seller’s timetable might be a valuable concession. If the seller is waiting for new construction, a rent back agreement after closing can be as appealing to a seller as cash in hand. Think about what your seller needs and how your offer might be able to accommodate that.
Sellers, Start Your Engines!
You are in the driver’s seat when you have multiple offers on your home. Now is the time to identify what is most important to you. Is it getting the highest price possible? Being able to move on your own schedule? Being able to bypass an inspection?
Pinpoint your primary goal for the sale and proceed accordingly with the offer that best reaches it. Does an offer stand out to you among all the others? You can choose to counter the offer that comes closest to the price and terms you want. You may also decide to negotiate with just a few of the offers, all of them, or none of them.
Another strategy is to ask for a best and final offer, where all bidders will come back with their highest bid and best terms.
Whichever strategy you decide to go with, enjoy the luxury multiple offers affords you as seller and do what is most advantageous to you.