How To Choose the Best Offer on Your Home

We are in a seller’s market. Housing inventory remains low while buyer demand is high. If you’re selling your home, then this is great news. It’s quite possible that several buyers will be interested in your home. In fact, you may actually receive multiple offers and have a bidding war for your property. While this an enviable position for any seller to be in, it begs the question — how do you choose the best offer? Let’s take a closer look.

Set a deadline

It’s not uncommon in some markets for a seller to receive multiple offers on their home within the first few days of listing. If it looks like you’re going to get several offers on your home, then set a deadline. This helps to create a sense of urgency for the buyers and gives you time to evaluate all the offers that come in.

Consider the buyer’s financial strength

Some sellers may be tempted to accept the offer for the highest dollar amount. But it’s crucial to consider the buyer’s financial strength when evaluating their offer. What if the buyer offering the most money can’t actually close on the deal? Make sure any buyer making an offer has been pre-approved for a mortgage. Also, consider how much they are willing to put down for their earnest money deposit and down payment, or if they’re able to pay all cash.

Examine the buyer’s contingencies

Most buyers will want to include at least one contingency in their offer. This allows them to back out of the deal if those contingencies aren’t met. These could include a home inspection contingency, an appraisal contingency, or a home sale contingency. Beware of offers that contain many contingencies, as those will affect your ability to close. In today’s market, many buyers are waiving their contingencies in order to get their offers accepted.

Know how serious the buyer is

A buyer’s offer may look amazing on paper, but how serious are they about it? You don’t want to accept an offer only to have the buyer back out because they aren’t fully committed. Ask whether the buyer has worked with their lender in the past, which illustrates their ability to qualify for financing. Also, find out if the buyer has any other pending offers, or if they have offers that have been rejected.

Know your own needs

You most likely have your own set of criteria when you’re selling your home, and you should pay attention to those needs. For example, do you need to buy another house before you close on your current home? Then look for a buyer that has flexibility with closing dates. Or maybe you want a buyer who will appreciate the home for the same reasons you do. Be sure to read any letters that come in from potential buyers, which will probably include information about why they think your home is the perfect place for them.

Weigh your counteroffer

Don’t forget that you have the option to submit a counteroffer to any offers you receive. Outline your preferences in your counteroffer, and consider disclosing the highest bid you’ve gotten. You should also consider a backup offer just in case your accepted offer doesn’t make it to the closing table.

Contact Agent inc. today!

Is it time to put your home on the market? Then contact the experts at Agent inc. at 949-791-8160 or [email protected] today. Let’s open your world to new possibilities!