How to Decide Which Offer to Accept When Selling a Home in the Long Beach Island Real Estate Market
Selling a House in the LBI NJ Real Estate Market
Selling a home is a major financial decision and one that requires careful planning however the rewards can be great if the LBI real estate transaction is handled correctly. One of the toughest challenges is how to handle multiple offers in the LBI NJ real estate market. While multiple offers on the surface may seem like a best case scenario, improper handling of the situation can actually lead to a costly mistake!
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How to Handle Multiple Offers in the LBI NJ Real Estate Market
There are a few characteristics of an offer that can help you decide which offer is best. For example:
- All cash offers
- Waiving of home inspections
- Faster closing dates
- Highest price
The best offer will depending greatly on your individual situation but in most cases, the best offer will be the one that puts the most money in your pocket! Surprisingly however, this is not always the highest offer. Lets assume you have two offers on your house. One is for $490,000 and the other is for $500,000. On the surface the higher offer seems like the right choice however if the $490,000 offer is all cash with no contingencies and closing in 2 weeks, it may end up being the better offer. When you factor in the carrying costs of the property (mortgage payments, taxes, insurance, etc) the cost of owning the home while waiting for a mortgage, home inspection and other contingencies to be satisfied may end up costing more money than the difference between the two offers!
Above all else, honesty is important. All parties need to be aware that they are competing with additional offers. It may be best to create a “final and best offer” situation and, in extreme cases, a final and best offer to be opened by the attorney with no further negotiation taking place! Whenever there are multiple offers on the table there presents the possibility that one or all parties may walk away from the transaction as they do not want to “overpay” for the house. Therefore, it is important to be aggressive, yet cautious, when approaching multiple offers in the LBI real estate market.
Selling a Home on Long Beach Island New Jersey
In some markets, the possibility of multiple offers may seem abstract but on LBI, it happens very often. When a house is priced well and marketed effectively, it is very common to see a lot of interest…especially in the first month of so of the listing. In fact, a listing will be most appealing during the first 2-4 weeks of being on the market. Therefore, it is important to seize upon this excitement and try to cultivate multiple offers. For more information about how to handle multiple offers in the LBI NJ real estate market, feel free to contact me and I will be happy to answer any questions you have!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market