Which Offer Is the Best for You?
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We had a question come in from a viewer who is wondering how to choose the right offer when selling a home. It’s a great question for sellers.
You want to start with price, but don’t end there. The offer with the highest price will certainly get your attention because it’s probably at asking price or even above it, but it doesn’t mean you should automatically hand over the keys.
You also want to compare contingencies in their offer – these are the conditions in the offer that if not met, they can cancel the deal. These contingencies can include getting approved for a mortgage, the house passing an inspection, and making sure the home appraises for a certain amount. They’re all negotiable.
Some buyers who are really aggressive will strip these contingencies to make their offer more appealing to you.
Start with price, but don't end there.
Also remember to consider the buyer’s funding; will they pay cash or finance the house with a mortgage? If they’re paying cash you won’t have to wait on mortgage approval. If they’re using a mortgage, make sure they have a pre-approval letter, and look at it closely.
Thirdly, consider your home’s value. Say you’ve accepted an offer, but the appraisal came in less than the price they offered. If the offer indicates that the buyers are willing to spend their own money to honor the original offer price, the offer is more attractive than one where the buyer is leaning completely on the money that’s being loaned by the bank.
Also remember to review closing periods. A buyer who can close within a few weeks is more attractive than one who needs a month or two. For most sellers, closing sooner is better, but that’s not always the case, and it may not be the case for you.
Finally, review buyer’s extras in the offer. Some buyers may be willing to pay some of your closing costs to stand out. They might also have an escalation clause, where they automatically outbid other offers up to a certain amount.
So if you’re thinking about selling your Grand Rapids home and you have any questions for me, please don’t hesitate to reach out to me. I’d love to help you out.