When it comes to selling a house, many homeowners make the mistake of thinking that the highest offer is the best offer. Most sellers grab the highest offer they receive for their home, especially when the offer is way higher than their asking price. However, what they fail to realize is the fact that the best offer can vary based on the terms of the sale, the right timing, the right price and their needs. Not to mention, there are also many costs involved in selling a place, such as closing costs among many others. Furthermore, the offer you accept doesn’t always translate to the total number you walk away with after these costs are accounted for, also known as your net proceeds. When you have multiple offers coming in for your home, you’ll need to have a plan for carefully reviewing each offer to determine which best fits your situation and gives you the most profit for the sale of your property.
In addition, there are a number of factors that you need to take into consideration for choosing the best offer for your home. Read on to find out five tips to choose the best offer on your home.
1. Compare the list of wants- One of the major factors that you need to take into account for choosing the best offer on your home is making sure you compare the demands of the potential buyers. Sometimes, the highest bidder might demand something that might sound unreasonable to you. Furthermore, don’t be under any pressure to give in to such demands if you are not comfortable with it.
2. Whether the buyer toured the property or not- Let’s face it, the last thing you need is a home buyer making an offer and trying to back out once they see your house in person for the first time. Furthermore, if you have two offers and they are nearly identical, but one home buyer has toured the property and the other hasn’t, it might be best to choose the offer from the buyer that has seen the house.
3. Think about the financing the buyers qualify for- Regardless of how great a potential home buyer might seem, they might not be the right person to purchase your property if they do not have the right mortgage lender to finance their purchase. Furthermore, not all lenders are the same and sometimes financing deals collapse. Furthermore, before having your heart set on a particular buyer, it’s a good idea to make sure that they are preapproved for a mortgage from a trustworthy lender.
4. Contingencies- Generally, most home buyers include some contingencies with their offer. Furthermore, contingencies are things that must happen in a set period of time in order for the deal to go through. The most common contingencies are inspection, appraisal and financing. Furthermore, for you, the fewer contingencies and the shorter the time period the better.
5. Factor in the timing and interest- Another major factor that you need to take into account for choosing the best offer on your home is making sure that the terms align with your timeline. Ideally, you want to get to the closing stage as quickly as possible, so a home buyer willing to close in a few weeks may be more attractive than a buyer who wants to wait a couple of months until their lease is over. Along with timing, make sure you are selling to a highly motivated home buyer.
Furthermore, a home buyer with family in the area, a new job or interest in the school district may be more attractive than a buyer with a higher price but little interest in the house or the area.
While these were some of the tips and tricks for choosing the best offer on your home, there are many others, such as size of the deposit, flexibility of the buyer among many others.