From: "JD" 
Newsgroups: misc.consumers.house
Subject: Re: Too Many Buyers
Date: Sat, 27 Sep 2003 02:50:25 GMT


Larry Bohen  wrote in message
news:vn9ks89ai5mq69@corp.supernews.com...
> I have an interesting dilema. I am selling a rental condo myself and have
> three buyers who are willing to pay my asking price. I am convinced the
> asking price is a fair one, therefore I am not looking to engage in an
> auction (I.E. encouraging the buyers to bid up the price). I must decide
on
> one of the parties and execute a Purchase and Sale Agreement. I'm thinking
> that I will proceed with the party that can guarantee the quickest closing
> with some dollar amount of penalty if the closing doesn't take place by
the
> guaranteed date.

That's not the best approach.

You want the one with the best ability to get timely financing. This
involves good credit, no government loans, and as large a down payment as
possible.

Are all the offers identical? Are they in writing? A buyer may be "willing"
but until you have a written offer you have nothing. Have each of them
present an offer in writing so you can analyze the terms for proper
comparison. Remember, there are closing costs than can impact the deal.

Also ask for prequalification from lenders that indicates they have applied
for a loan and their credit was evaluated.

After you rank the offers you will want to counter with your terms. Counter
all offers that have good buyers. Let them all know that you are countering
multiple offers and when your counter is returned you will then determine
who you will open escrow with. Give them a certain amount of time to
respond -- 24 to 48 hours. One of your conditions in the counter will be to
secure financing approval within 15 days.

Once you select a buyer, ask the others if they would like to be considered
as back-ups during that 15 day period.

Of course, if you get a cash offer, jump on it as long as it's accompanied
by proof of funds that will be liquid by close of escrow... which should be
less than 30 days.