How To Evaluate an Offer on Your House
Receiving offers from potential buyers is one of the most exciting parts of selling a home. Whether you get multiple offers or just a few, you should know how to evaluate them.
Evaluating an offer isn't very direct, and there are numerous terms and conditions you must take into account. And while there may be a very high offer, it might not be the best one for you. This article unpacks essential tips for evaluating offers.
Go for the Best Buyer
Price is important when selling your home. After all, you're aiming to make money from the sale. However, the largest offer isn't always the best offer.
Typically, the best buyer makes themselves known. A good buyer will have gone through the house several times. They will likely have been in the market for a while, working with the local agent, and have approval from a mortgage company.
Be in Communication With Potential Buyers
Communication is crucial while you're selling your property. Ensure you have constant contact with potential buyers. Show them that there are several reasonable offers, and they should try to make their best offer or increase an existing one. Inform them that you have set a specific date to evaluate the bids on your property.
Consider the Contingencies
When selling your house, you must consider contingencies in a real estate contract. In most cases, the more contingencies on a purchase offer, the higher the probability of the deal falling apart.
When evaluating your purchase offers, you should ensure you go through each potential buyer's contingencies. Here are some of the contingencies you should check when evaluating the bids on your home.
Inspections. A home inspection is the most crucial contingency. It allows the buyer to have the house checked on their behalf by a professional. If the buyer finds any areas needing repairs, they may request you fix them or cover the cost on closing.
Appraisal. This contingency allows a third party to evaluate the property’s market value. If the property’s appraised value is lower than the sale price, the potential buyer may walk away from the deal.
Mortgage. A mortgage contingency helps the buyer avoid entering into the sale without the right loan. Waiving this contingency is risky since the lender can reject the buyer for the loan.
Be Keen on Red Flags
As mentioned earlier, you should evaluate more than just the bids and offers you get. A buyer may make the highest offer to win in a bidding war, only to back out of the deal before you close. This is usually caused by buyer’s remorse, where an individual experiences regret after making a purchase.
Examine Mortgage Qualifications
You should ensure that the buyer can acquire financing and can prove their financial resources. It's best to get a buyer who can purchase your property in the determined time frame.
The Bottom Line
Navigating through offers may not be straightforward, especially if you lack the necessary knowledge. You can always seek professional help or work with a local real estate agent if you have multiple offers.
Posted by Website Programmer