Once you have made up your mind to sell off your home, you would start receiving multiple offers that keep pouring in from prospective buyers. You must meticulously examine those offers and choose the best offer as per your preferences. Remember price is just one of the factors to consider while determining the best offer.
As per Forbes.com, the highest offer may not get the buyer his new property. According to conservative wisdom, while the negotiations are on particularly, in a situation with several offers, whosoever offers the maximum money would be getting the property. However, that is certainly not the truth. A reliable real estate expert would be advising a home seller to consider all the different aspects or components of the offer carefully before opting for a particular offer.
Factors to Consider
Remember to treat a home offer as a sum total of certain key parts. Here are some crucial factors to consider while selling your home and ways how each factor impacts your choice of home buyers.
In the real estate world, the term contingency is used for referring to a specific condition that is included in the ‘Agreement of Sale’ that should take place for the deal or transaction to go through. As the home buyer, you have the liberty to choose multiple contingencies and include them in your contract. For the seller, it is best to have fewer contingencies in the contract and also, a relatively shorter time period. The most common and frequently incorporated contingencies are financial, inspection, and appraisal.
In case of an inspection contingency, the home buyer has the option to back out if the property inspector identifies a major issue or far too many problems associated with the house. A financial contingency gives the prospective buyer to back out if they are unable to secure a mortgage. The appraisal contingency could be put into effect provided the property appraises much less as compared to the offer amount. It is best to contact Freedom Home Buyers who come up with the guarantee of a fair cash offer within just an hour.
You would not get typically the highest offer for your home if the purchaser is coming up with all cash. However, this seems to be the safest offer in most cases. A cash offer seems far more appealing and expert real estate professionals feel that it is best not to depend on the whims and fancy of the bank for loan approval, in case of a finance offer.
Very few buyers can pay for the house outright in cash. Hence, a letter of pre-approval is the best possible thing under the circumstances. The pre-approval letter is sent to the homeowner from a lender with the assurance that your home buyer would be getting the loan he is looking for. In this context, you must understand that a pre-approval letter could make the offer far stronger as compared to the offer submitted minus a pre-approval.
Price does matter and is an important part of the home selling mix. It might be outweighing other variables discussed above. The highest offer could be your first choice provided all other details and factors are in place. However, in case, the highest offer seems to have a high likelihood of not closing or will be costing you far more in terms of repairs, or closing costs then that may not be your top offer.
We have discussed the top four factors that must be considered while selling your home. However, there are some other critical factors that also, could be considered such as earnest money. This is actually a deposit that is collected from the prospective buyer as a token to show they are serious and committed about purchasing the house. You could keep this amount if the prospective buyer despite his commitment changes his mind about purchasing the property just because he developed cold feet and even when there was no fault with the house, as such.