In 2017 our real estate team helped 45% of our Madison area home-selling clients receive multiple offers on their listing. In 2018, our clients are way ahead of that pace with one recently receiving a whopping 14 offers to purchase. Great things happen when sellers receive multiple offers. Below are 5 reasons why we aim to attract competing offers for each and every sale.
5 reasons to attract multiple offers
#1: Multiple offers help sellers attract the highest possible price. Just like an auction, the price goes up when buyers compete against each other.
#2: Cash offers are more common when buyers compete. Heavy competition greatly increases the odds that one or more buyers will submit an offer without a financing contingency. For those buyers who do need a mortgage, some will sweeten their offer by increasing their down payment amount.
#3: Some buyers will waive their appraisal contingency, while others will include language that makes their appraisal contingency more appealing to the seller. These buyers show they are committed to closing even if the appraised value comes in below the offer price.
#4: Some buyers may even waive their inspection contingency, while others will include a modified inspection contingency that places a limit on repairs. These buyers give sellers peace of mind that they will close no matter what - even when unexpected defects are found during the home inspection.
#5: In general, offers are cleaner and much more favorable to the seller, when buyers compete. Offers without home sale contingencies, radon testing contingencies, and seller home warranties are all much more likely when buyers know they have competition.
For more on this topic
Check out this article, which shares more information on how competing offers benefit a sale. Then check out this blog post, which offers a few no-nonsense tips that will help you attract multiple offers to your listing. Of course you can always visit our Madison area home sellers' blog for all of our latest tips and advice.
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred