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5 Ways to Maximize Multiple Offers on Your Home

By U.S. News & World Report

In today’s fast-paced seller’s market, an aggressively priced property can often fetch multiple offers, spurring a bidding war between homebuyers. As the seller, this is an extremely fortunate position to be in, but one which may prove more confusing than expected.

It’s easy to assume the offer with the highest net profit will be the one to accept, however there are many aspects to evaluate which will contribute to the offer’s strength. Here are five strategies to maximize multiple offers on your home.

[See: 10 Secrets to Selling Your Home Faster.]

Ask for highest and best. Once you recognize you’ll be entering into a multiple-offer situation, have your agent notify all buyer’s agents to submit their client’s highest and best offer by a specific deadline. By doing so, you force all potential buyers to lay their cards on the table and show their hand. They’ll view it as a hot property, and be less likely to hold anything back.

But doesn’t this take the negotiation out of it? Only at this point in the transaction, and that’s OK. Negotiating opens up the possibility for a consensus to not be met, and the deal to fall apart. At this point, you’d have to go to the second best offer, which may not be as lucrative, and the buyers would recognize your position is no longer as strong.

Make requests. As the seller, you are the teacher and everyone wants to be your pet. Be clear in how people can suck up to you by tailoring their offer to meet your needs.

For example: If you would like to settle as soon as possible, but will need time to find your next home, have your agent spread the word you’d like a lease-back option. Once the transaction closes, you won’t be forced out of the house immediately, buying yourself time to make your next move.

Request financial information. Have all offers include a document outlining the buyer’s financial situation — debts, account balances, job history, etc. Depending on where you live, this may already be a standard practice with all offers.

Throughout the course of the transaction, it’s possible you will run into issues. Whether it be an appraisal problem, home inspection items or financing requirements, you want to be as sure as possible the buyer has the means to weather the storm and won’t jump ship at the first sign of a problem.

[See: 10 Must-Ask Questions When Choosing a Real Estate Agent.]

Compare loan types. When all offers have been submitted, your agent should call each of the lenders involved to confirm a full preapproval has been done and there are no red flags with the buyer. Your agent should also ensure the lender can have the loan fully financed by the settlement date indicated in the offer.

Based on this conversation and the financing information provided in the offer, you should have a clear outline of the type of financing the buyer intends to use. Your agent should be able to provide an explanation of the pros and cons to each option, but here are a couple rules of thumb:

— Cash is king. With an all-cash offer you don’t have to worry about an appraisal, settlement typically occurs sooner and the buyer is much less likely to nickel-and-dime you over inspection items.

— Strength in down payment. Not only should you be looking at the type of loan — conventional, Federal Housing Administration, Veterans Association, etc. — but you should evaluate how much the buyer is putting down. The down payment speaks to the financial strength of the buyer, and should there be an issue in the financing process, more money down leaves more loan options for the buyer to explore should he need a backup plan.

Weigh the pros and cons. The ideal way to choose the strongest offer is to lay out a side-by-side spreadsheet comparison to measure the pros and cons. Analyze price, seller credit, inspections, financing, deposit, closing date and any other pertinent information. While some aspects, such as price, deposit and seller credits may be black and white, others may carry more weight depending on your particular situation.

With this in mind, prepare for ” letters from the heart.” A strategy often utilized by buyers to tip the scales, this is a handwritten letter accompanying the offer describing how the buyers intend to lovingly care for the home, what they enjoy about it, and a little about their situation.

Every seller is different. Some have lived in their home for decades, raised their children there and have nothing but amazing memories. If the buyer fits a similar mold, a letter may very likely carry more than its weight in gold, adding significantly to the pros category.

[See: 10 Terms First-Time Homebuyers Should Know.]

Should you be of a purely for-profit mindset, don’t even open the letters. Keep an objective mindset by focusing on the contract itself.

By finding what carries the most weight for your situation and analyzing all aspects of each offer, you are sure to capitalize on the fortunate situation in which you now find yourself.

More from U.S. News

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The Future of Real Estate: 5 Ways Technology is Shaping How You Invest

Why Your Home May Not Be Selling, Even in a Seller’s Market

5 Ways to Maximize Multiple Offers on Your Home originally appeared on usnews.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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