The North County San Diego real estate market is hot! There is strong demand for homes as buyers rush to take advantage of low interest rates or make lifestyle changes caused by the pandemic. If you’re a seller, then this is great news for you. In fact, many North County home sellers are receiving multiple offers or even inspiring bidding wars on their homes. So what do you do in this situation? How do you decide which is the best offer? Here’s what you need to know.
Choose a deadline for offers
Given how hot the market is this summer, it’s not unusual for North County home sellers to receive several offers during the first few days on the market. In order to not feel overwhelmed by the number of offers that are coming in, set a deadline. Those buyers that are serious will make sure to get their offers in before the deadline. It will also help you feel less stressed by the number of offers you have to evaluate.
Know how to spot a serious buyer
Knowing how to spot a serious buyer is also essential when you get multiple offers on your home. You don’t want to waste time with a buyer who was never really committed in the first place. At a minimum, they should be pre-approved for a mortgage or be able to demonstrate that they can pay all cash. Ask your agent to find out if they have any other offers out there that are pending or have had offers that were rejected. See if the buyer has worked with their lender in the past, which will give you more confidence that they will be able to close on their loan.
Look at the buyer’s financial health
It’s tempting to accept the highest bid and call it a day. But what if that buyer can’t actually close on their loan? Then you’ll be back at square one. When deciding on which offer to accept, look at the buyer’s financial health. Check for a mortgage pre-approval and see how much they are willing to put down for an earnest money deposit or down payment. If they can pay all cash, then that would be even better.
Be sure to consider the contingencies
It is not uncommon for buyers to include contingencies in their offers. These could include a home inspection contingency, a home sale contingency, or an appraisal contingency. The more contingencies that are included in the offer, the more difficult it will be to close on the sale. Many buyers today are submitting offers without contingencies to improve their chances of having their offers accepted.
Don’t forget about your own needs
Finally, don’t forget about what you need out of the deal. Do you want to sell to a family that will make lasting memories in the home, just like you? Many buyers will include a personal letter in their offers to let sellers know what they love about the home. You can certainly take those reasons into consideration. Or maybe you need time to close on a new home and will need to stay in your current house for a month or two. See if there is an offer that will allow you to be flexible with closing and/or moving dates.