After you listed your home for sale, you started receiving bids. How do you choose the best one to ensure that you don’t let a great opportunity pass you by? If this is the question brimming on the top of your mind, keep reading!
Everyone wants to receive a bigger offer than what they are asking for, but the highest offer isn’t always the best one. The “best deal” can change depending on your requirements, the sale’s conditions, the ideal timing, and, of course, the ideal price.
Real estate agent commissions, closing charges, (if you can’t buy and sell your home at the same time) are just a few of the expenses associated with selling a home. The amount you receive after deducting these expenses, sometimes referred to as your net proceeds, may differ from the offer you accept.
However, selecting the best offer is more difficult than simply accepting the highest offer. You must protect yourself from a variety of hazards, such as a buyer supported by shaky financing or negative contract language. Below are a few other considerations that are important when selling your house and how they could influence your decision.
Things to Take into Account With a Home Offer
Conditions
The majority of purchasers add certain conditions in their offer. Contingencies are events that must take place within a specific time frame for the agreement to close. You would prefer that there be fewer uncertainties and a shorter time frame.
The three most frequent contingencies are appraisal, financing, and inspection. With an inspection condition, the buyer can back out if the inspector discovers a significant issue or an excessive number of problems with the property. If the buyer is unable to obtain financing, a finance contingency lets them back out, and an appraisal contingency kicks in if the property doesn’t pass inspection.
Preapproval of the Buyer
Cash purchases of homes are uncommon. Therefore, a letter of pre-approval is the next smartest idea. With the help of this letter, a lender reassures house sellers that their buyers will be able to obtain the financing they require.
But don’t mix this with pre-qualification. Pre-qualification and pre-approval have important differences, according to Machado. Being pre-qualified does not guarantee approval because the borrower is not thoroughly vetted throughout the pre-qualification procedure.
Timing of Closure
If you want to go on to your next adventure, you might need to close as soon as feasible. You’ll be particularly interested in a buyer who can sign quickly and may be all-cash.
Or perhaps you require a longer closure period. If you’re having a house built and are unsure of when it will be finished, for instance, a buyer who wants to wait a few months to close could prevent you from having to relocate again.
Cash Only Buyer
When the buyer is offering all cash, you usually won’t receive the best deal. But this is frequently the most secure offer. As the seller doesn’t have to worry about whether the bank will approve your loan.
Purchaser Letters
A “love letter” from a buyer could reassure you that you are selling to someone who will care for the home as much as you did if you love your home and are worried about its future. Your home won’t be sold to a developer or another unfavourable buyer thanks to a love letter.
loan kind
Mortgages come in a variety of forms, and some are more straightforward to manage than others. Since conventional loans are frequently the least complicated, they are a popular option for sellers. Because they need certain renovations and permissions, government-backed loans like the FHA and others might cause delays.
Security deposit
A security deposit is a deposit made by buyers to demonstrate their commitment to purchasing the home. Security deposit often ranges from 1 to 3 percent of the buying price; the bigger the amount, the safer for you. Your real estate agent can advise you about local customs.
In some circumstances, such as when there is nothing wrong with the property but the buyer simply gets discouraged, you can keep the earnest money if the buyer decides against making the purchase. You can be more certain that the deal will close the higher the earnest deposit.
Furniture and appliances
Do you intend to bring your furniture from the living room, favourite light fixtures, and appliances like the refrigerator, washer, and dryer with you? Then a buyer who doesn’t request or insist on those being included in the contract may choose to prioritise that offer.
Takeaway
When all the details to take into account when selecting the best offer for you are added up, the process of home selling can seem daunting. Once the above tips are followed, you are sure to have an easy process
