The professional staff at Red Blue Realty knows that more homeowners in Los Angeles are receiving multiple offers as demand for properties is high. Multiple offers are a sure sign that home supply is limited, and can help raise home prices and even cause bidding wars, but knowing how to handle multiple offers is key for achieving the highest prices and best terms in a sale.
They’ve put together a few essential tips on how to achieve the best price for a home. The first tip is how to make a home attract multiple offers, and Red Blue Realty points out it’s essential that a home is listed at the correct price, and that it’s in good condition with no major defects. This will help create a strong potential for multiple offers, as overpricing the home can have the opposite effect from slightly underpricing a property, especially if the market is right on the cusp of a boom.
Their second tip is to use the MLS as they feel that this is a great resource for creating interest in the property. They point out it will be exposed to the largest number of potential buyers, and that sellers should be sure to find out if their Los Angeles real estate agent intends to list their home in the MLS as soon as possible.
The third tip is in determining which offer is the best, and this may not necessarily be the highest offer. It’s always important to take into account the buyers qualifications, their ability to move and to be flexible with dates, or their requirement for contingencies involving the sale.
Their fourth tip relates to the way offers are presented. Offers can be presented by fax or e-mail rather than being presented by the buyer’s agent, something that can save time for both the seller and the agent. However the ultimate choice is of course down to the homeowner. They recommend considering all offers equally regardless of their source, although some real estate brokers offer small cost savings for sellers with an “in-house” transaction. This is something worth discussing when the listing agreement is made.
Their fifth tip involves encountering multiple offers. A counter offer can be submitted to several offers at one time. In this case they point out it’s unwise to accept a better offer once escrow is undertaken as there’s always the possibility that the buyer will take legal action if the seller tries to back out of the original offer.
The final tip relates to the length of the listing. Red Blue Realty thinks any agreement with a reputable real estate brokerage shouldn’t last any longer than three months as this is the maximum viable amount of time a home to be on the market if it’s priced correctly and is in good condition.