Selecting the Right Offer When Selling Your Home

If your home is in move-in condition and priced right, sometimes you will get more than one offer at a time.  Before you jump on the highest price, however, be sure to consider each offer carefully. We can help you weigh the pros and cons of each potential buyer.  In general, you’ll want to think about the following issues:

1. Is this a good buyer?  You want to make sure that your buyers can get financing.  These days, most buyers get pre-approved for a loan prior to beginning their home search, especially savvy buyers who are working with agents. If you’re concerned about a buyer, you can write in a contingency that the buyer obtain full loan approval within a week or two of the contract date.  If they cannot fulfill this condition, it may benefit you to find a more solid buyer.

2. Are there contingencies?  If one buyer requires that they sell their home before closing on yours while another one is ready to close, you may want to go with the second buyer. You don’t want to be locked into a contract while waiting for the buyer to sell their home.  If you accept this contingency, be sure to set a deadline after which the contract is void.

3. How are the closing costs to be paid? One buyer may stipulate that the seller pay closing costs while another may not.  Because closing fees can add up, this can be a significant amount of money.  Two offers for the same sale price could have very different bottom lines.

4. How much earnest money is the buyer willing to put in escrow?  A big deposit is a good indication that the buyer is serious.

5. Estimate your net proceeds.  Sometimes the highest price doesn’t mean the largest check at closing.  To estimate your net proceeds, subtract from the sale price any fees or payments that you must make, including paying off your existing mortgage, real estate commissions, unpaid taxes or other liens, closing costs you agree to pay, and any additional costs outlined in the sales contract.  We can help you estimate the costs so that you can compare multiple offers.

6. What conveys with the house? To avoid confusion, contracts should list fixtures, appliances, etc., that are included in the purchase price.  Window coverings, area rugs, furniture, and other items can be used as bargaining chips.

7. When can you move out? If you anticipate a problem moving out of the house by the closing date, you can include wording in the contract that gives you a certain amount of time after closing to move out.

It’s best to think about these issues before you get your first offer.  That way, when you’re in the negotiating phase, you can concentrate on working out an agreement that’s acceptable to both you and the buyer.