Once you put your home up for sale and the offers start pouring in, you may ask yourself “how do I choose the best offer?”. In this blog post we are going to walk through some of the best practices when picking the best offer on your home. Particularly we want to avoid you feeling like a good deal could slip between your fingers.
Deciding on the right offer comes down to a lot more than just price. There are many other factors that weigh on which offer is going to be the “best”.
Here are some of the factors that an offer includes:
- The amount of the offer (or price!)
- An explanation of how the buyer will pay, such as cash or a pre-approval for financing
- The terms – such as a request for closing-cost help or contingencies such as the sale of the buyer’s house, a final mortgage approval, a satisfactory home inspection, and an appraisal
- A target date for closing
- An earnest money deposit
- A time limit for the offer
You will want to review each offer carefully as they come in, specifically looking at the contingencies and financing. Some contingencies can be riskier for sellers so look out for buyers who bring an offer forward that is contingent upon selling their existing home. You have no way of guaranteeing when and if the buyer’s home will sell, which puts you in a sticky predicament if you need to move quickly.
Whether you have one offer offer or several, we’ll look deeper at:
- The amount offered
- Whether the buyer has included or waived contingencies
- Where the funds are coming from, such as all-cash, a reputable local lender, a well-known online lender, or an unknown out-of-town lender
- The proposed closing date and date of possession of the house to see if it aligns with your needs
- Any special requests for items to convey or for special inspections
Once you weigh each offer based on these categories it is all going to come down to your priorities individually. Make sure to write these down and express them to your real estate agent. Here are some questions you need to ask yourself; How quickly do I need to close? When do I need to move out? Am I able to make necessary repair requests? Am I okay with an offer contingent on the sale of another home? What inspection period am I comfortable with?
After pinning down your priorities and determining which offers weigh heavier than the others, you will be able to make the decision to accept the “best offer”. Oftentimes one offer will easily stand above the rest and in that case you will want to accept it right away! But, you want to be careful not to be swayed by a high offer if the financing seems uncertain or if the buyer hasn’t explained a plan for a possible low appraisal.
Don’t forget you can always counter offers to get a better price and terms as well! And I’ll negotiate until both you and the buyer agree on the final contract. I will be your ally during the negotiations, leveraging my data and expertise to work on your behalf. At the end of the day, you’re not alone and will have your real estate agent to help you every step of the process. You should feel confident and sure that you made the correct choice after weighing all the above factors.
Now that you have a better understanding of how to choose “The Best Offer” when deciding to sell your house, do you have any other questions? Are considering selling your home, but not sure where to start? Or just curious how much your home is worth?
