Effectively handling Missouri’s competitive real estate market can be both overwhelming and exciting, particularly when your house draws multiple offers. While this situation is ideal for a seller, it requires a strategic approach and careful consideration in order to ensure a seamless transaction and maximize your gain.
Although multiple high-priced offers are appealing, as a seller, you need to prioritize the potential buyers’ economic reliability as well as the offers’ contingencies (conditions that must be met) to avoid nasty surprises during closing.
How Does One Offer Differ From Another?
Although an offer’s value is the main consideration for most sellers, it is just one of multiple factors that may vary from offer to offer. Other factors, such as contingencies, financial terms, earnest money deposits, and closing timelines, can ultimately make certain offers more or less appealing to sellers. Once all of these factors have been taken into account, many sellers often realize that the best offer on the table isn’t necessarily the one offering the most money.
Making the Right Choice
Based on your unique priorities and needs, a skilled Missouri real estate lawyer can help you choose the best offer. For instance, sellers looking to move as quickly as possible might be tempted by a shorter closing timeline, whereas sellers who prefer an easy transaction might prioritize an all-cash offer that eliminates the need for financing and mortgages.
Counteroffers
A seller responding to a potential buyer’s offer by proposing different terms is known as a “counteroffer.” These new terms may involve asking for more money, or simply change the parameters of the agreement, timing, or contingencies. It is not uncommon for sellers to disclose the details of one potential buyer’s offer in an effort to convince a second potential buyer to make a stronger offer. Keep in mind that once a counteroffer is submitted, the original offer is voided, meaning the party who received the counteroffer may not backtrack and agree to the original offer.
Negotiating Multiple Offers
When facing more than one potential buyer, a seller in Missouri could simply go with the highest offer or they might use negotiation strategies. For example, some sellers may disclose competing offers to potential buyers and ask them to make their strongest bid. Other sellers may, however, counter one particular offer while waiting to respond to others until they get a reply, or counter a single offer and reject the others outright.
Negotiations are tricky, and every negotiation strategy has its own set of pros and cons. For instance, making a counteroffer or letting a potential buyer know that other offers have been made could pave the way for a higher offer. Unfortunately, it could also cause potential buyers who feel their initial offer was more than fair to chance their arm elsewhere.
A knowledgeable Missouri real estate attorney can guide you through a multi-offer scenario by supplying reliable legal advice, reviewing and drafting contracts, ensuring all legal conditions are met, and counseling on strategic negotiation methods to achieve the best possible result.
What Happens if I Receive a Better Offer?
In this situation, consulting with an attorney is paramount. When trying to back out of an offer, sellers typically have less flexibility than buyers. Once a purchase agreement is signed, it can be almost impossible for a seller to renege. In fact, doing so can result in legal problems, so sellers are encouraged to avoid accepting an offer until they are satisfied with its terms.
There are, however, some cases in which sellers are legally able to back out of a sale. For example, if the buyer fails to meet contingencies specifically outlined in the purchase agreement, like a closing deadline. Working with a trusted Missouri real estate attorney from Wegmann Law Firm can help you avoid the legal pitfalls associated with changing your mind in a Missouri real estate deal.
The Role of a Missouri Real Estate Lawyer
An experienced Missouri real estate lawyer can review your offers, counter-offers, and listing contracts before any agreements are signed. They can also counsel you through the various stages of selling a property, such as:
- Working closely with the buyer’s lender on surveys and appraisals
- Drafting seller disclosure statements, which disclose the property’s known defects and current condition
- Review the title company’s title work, settlement statement, and sign the legal documents required to close on the property and pass ownership to the new buyer
- Responding to buyer-initiated inspections
- Reviewing commission percentages and verifying the accuracy of listing information, such as the number of rooms, square feet, taxes, school district, lot boundaries, and homeowner dues.
By completing these steps under the watchful eye of a Missouri real estate attorney, sellers can avoid expensive mistakes while protecting their investment.
Contact Wegmann Law Firm Today
Anyone selling a commercial property or a home can benefit from the representation and legal advice of an experienced Missouri real estate lawyer. At Wegmann Law Firm, our team is dedicated to protecting sellers’ interests in sale and purchase agreements. We will oversee any title-related issues and ensure your transaction is as successful and smooth as possible. From negotiating with potential buyers all the way through to closing, we provide reliable legal guidance and comprehensive representation. To schedule a case review with a member of our team, call us at (636) 797-2665 or fill out the contact form on our website.
