HOW TO CHOOSE WHICH OFFER TO ACCEPT AS A SELLER
As a seller, choosing the right offer can be a little bit complex. It may not seem so at first (for a novice) because it’s easy to think the biggest offer that meets your monetary target is the best option. However, there are many other important factors to consider alongside the financial prowess of a bidder. Some of them include; the buyer’s conditions, if they have been pre-approved, and how soon you want your home off your hands. As we go further, you’ll see where the various factors come to in choosing which offer to accept as a seller.
Come Clean About Your Reason for Wanting to Sell.
From there, your agent will know how best to help you. For example, if you need the money from the sale of your home urgently, you ought to accept the most favorable buyer within the shortest period. If you cannot afford to renovate the property, it’ll be wise to tell your agent so they can find a buyer that wants the house as-is. However, if you are in no haste, you can wait for the highest bidder with the most stable income. One that will meet at least 95% of your checklist before agreeing to hand over the house. Long story short, your agent ought to be aware of your financial situation to help you get the best buyer within a suitable time frame.
Consider the Buyer’s Contingencies
Potential buyers always have a couple of conditions they expect before they can make a purchase.
These contingencies may include; home repairs, a thorough home inspection, full property appraisal, and even a part of the closing costs. The more contingencies a buyer has, the better for them. However, that isn’t good news for you as the seller. More contingencies mean you have to spend more money on minute details that will keep you on your toes right up till the closing. In case the buyer finds something wrong during the final walkthrough, it may be a deal-breaker for them, considering they told you their contingencies before time.
So, What’s the best option for you? Choose a buyer with few contingencies that do not have many loopholes to save yourself time and money.
Consider the Earnest Money Deposit
Also known as good faith money. It is what a buyer pays upfront as a deposit for your property. When deciding which offer to accept, choose the buyer with a significantly higher earnest money deposit. Not only will this give you an idea of the buyer’s financial situation, but it’ll also let you know how serious the buyer is, considering that buyers who pay larger amounts are less likely to walk away from the deal.
Verify the Buyer’s Financial History
In a bid to buy a house, buyers have been known to make juicy offers they will be unable to live up to. Some of them claim to have enough funds to pay up, but in reality, they aren’t as financially viable as they claim to be. To avoid getting hitched with such buyers, ask your agent to run a background check on their financial history.
Request a valid pre-approval letter from the buyer’s lender if they cannot pay in cash.
For a buyer to be pre-approved by a lender, it means they have a good credit score; they pay up their taxes, and in most cases, have a low-debt-to income ratio and can afford a down payment. Although such a buyer may not have the cash at hand, you are assured they will not fail to pay up consequently.
Find Out the Type of Loan
An important point to note is the loan type taken by the buyer. The federal government’s loans are subject to a long waiting period as they require that certain repairs be done after they have been approved. In contrast, conventional loans have a shorter procedure with fewer requirements and less paperwork.
Mode of Payment
While some buyers may offer to pay through checks, some will present a cash offer. A cash offer is rarely ever the highest offer available. Nonetheless, it is the most certain and stress-free offer. It eliminates the hassle that comes with waiting for the buyer’s loan to get approved by the bank. It also assures the seller that the buyer’s ability (inability) to sell their present house will not affect their transaction.
A buyer’s ability to reach a compromise is essential for the wellbeing of every seller.
As a seller, it is in your best interest to avoid buyers who are unwilling to adapt to a few tweaks that may be made to the original plan. The more understanding a buyer is, the less trouble they will bring you.
Keep Your Emotions in Check
Being calm and collected allows you to think, analyze, and make better choices. Choosing a buyer is so important that you need to keep your emotions at bay. No matter how irritated you get or how pitiful your buyer sounds, you have to keep a friendly yet business-like demeanor, so you don’t make the wrong choice. Also, buyers know you are human and can use the emotions you have shown them to get a better deal from you. However, it’s advisable to think clearly about your decision to part ways with emotionally attached items—for example, your furniture, certain appliances that were gifts, and other such things.
Your Neighbors’ Opinion
Depending on your house’s location, your neighbors may have a role to play in the offer you choose. They will probably prefer a buyer with whom they share a similar lifestyle and other beliefs. Nonetheless, do not derail from your goal solely because of their opinion, as it may not favor you.
The best offer isn’t always that which catches your attention at first sight. It is that which will hold your attention after going through every aspect of it with a fine-tooth comb. One that comes with the least baggage, meets your expectations and lets you strike a balance between your emotions and financial gain.