Here are the things that sellers need to look for in an offer.
Today I’m going over what a seller should look for in a real estate offer and whether it’s best to accept the highest offer.
As a seller, one of the most common misconceptions in this market is that you can get many offers without doing much work and then simply choose the highest offer. We’ve indeed had listings that have received 25 to 30 offers on them, but real estate agents spend days analyzing the offers with our clients to make sure that they’re choosing the best one. It’s not always the highest dollar amount that makes the best offer. There are several things that you want to take a look at when you’re considering which offer to go with:
1. Earnest money. How much is that earnest money? When does that earnest money become non-refundable?
2. Different contingencies. Are the buyers willing to waive their due diligence or that appraisal? If they are getting an appraisal, do they have enough money in case they have a gap in between what the house appraises for and what they’re willing to pay?
3. What is the financial strength of the buyer? Are they pre-qualified or pre-approved? Has someone talked with the loan office to get information? Has credit been pulled? Has income been verified? All of these questions need to be answered.
4. What are they willing to do to make life easier for the seller? There are many sellers out there that are worried about how long they can stay in the house until they have to move to the next place. Many buyers are now putting in offers stating, “We’ll let you stay in the house for this much time after we’ve closed.”
This is just the tip of the iceberg as to all the different little nuances that you need to pay attention to in the offer. The highest offer may not always be your best option. If you’re thinking about selling and nervous about navigating a transaction, reach out to us. We’d love to help you out.