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Ask Adam: Negotiating Multiple Offers

By WTOP Staff

Ask Adam header

This regularly-scheduled sponsored Q&A column is written by Adam Gallegos of Arlington-based real estate firm Arbour Realty, voted one of Arlington Magazine’s Best Realtors of 2013 & 2014. Please submit your questions via email.

Q. I don’t want to get ahead of myself too much, but we are putting our house on the market next weekend. It’s in great shape and we think it is priced well. If we are lucky enough to find ourselves with multiple offers, what is the best way to handle that situation?  

A. There are a number of ways I have seen multiple offer situations handled. I think the best strategy is to set a deadline by which all offers must be in. I prefer to go live on the market Wednesday or Thursday with a Monday evening deadline for offers. This gives buyers plenty of time to see the home and gives agents plenty of time to thoughtfully construct their offers. I’ve found that waiting any longer than can lead to drop off in interest.

You’ll need to make it clear to agents that they should present their client’s best offer. Otherwise you will have some buyers that are expecting back and forth negotiation.

I highly recommend allowing escalation clauses. In my experience, buyers are much more willing to reach on price if they feel it is justified by what other buyers are also willing to pay. I’ve come across listings recently that didn’t allow escalation clauses and for the life of me, I can’t figure out the justification for such a rule. It almost guarantees that buyers will take a more conservative position when it comes to deciding what terms to offer.

I have a spreadsheet template I created to keep track of the offers. It makes it easier to compare the merits of each offer, like: price, escalated value, contingencies, EMD, closing date, seller concessions, rent-back offered, etc.

Once you have chosen the contract you would like to work with, you still have the ability to counter certain items that you would like the buyer to improve. For example: you may like everything about one of the offers, but want to request a rent-back period.

If you are already getting above asking price, then I don’t recommend countering price unless it is somehow justified. For example:  You really like everything about offer “A” but it is a few thousand dollars less than one or two of the other offers. You might decide to reach out to offer “A” and let them know you are willing to go with their offer if they can adjust their price to match offer “D.” Some buyers may tell you to take a hike, while other buyers will be relieved that you gave them the opportunity.

I also recommend asking for backup offers. It tends to keep your primary buyer much more motivated and provides you as the seller with a clear backup plan. This is especially important if you are in the process of buying a new home for yourself.

The views and opinions expressed in the column are those of the author and do not necessarily reflect the views of ARLnow.com.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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