When an offer comes in on your home, or more than one offer comes in at once, you need to have a way to be able to evaluate them to be sure that you make the best choice possible. Ideally you want that best offer that will close which is not necessarily the one that has the highest price or even the one that appears to be the best overall. In this video you’ll hear info that will help understand some of the points to look at when evaluating an offer.
So, the offered price is not the only thing to look at when evaluating an offer. Various other factors you should look at when considering an offer are:
- Is the price offered real and is it likely to make it through to closing? Sometimes buyers offer an attractive price to secure a property with the intention of getting it for less. In other cases the buyer does that knowing that they can’t afford the price they offer and then plan to bring that up down the road when you won’t want to lose the sale, in order to get you to drop the price. There are ways to tell if this is the case and your agent can help you with that.
- Is there an clause or addition in the offer that change or will allow the buyer to change important terms or the price significantly?
- How much activity have you had since you listed? If the timing of the sale is very important you will need to determine whether it is worth waiting for a possible better offer or if trying to pursue this current offer is a better choice considering the timing.
Since you will continue to pay things like a mortgage, taxes and insurance until the house actually sells, you need to remember that even if you have or have had several offers that doesn’t remove the monthly financial burden until one actually becomes a completed sale.
An important step is comparing how likely it is for any offer to make it all the way to a completed closing. Contingencies such as one where your sale depends on the sale of their home, whether they’re really pre-approved for financing, etc. can all have an effect on whether an offer makes it to closing..
Don’t forget that there are 3 options for an offer you receive – accept it, reject it, or submit a counter-offer that is closer to what you want.