Tips For Picking An Offer When Selling A Home
Posted on: 12 December 2022
Are you in the process of selling your home and have received multiple offers? This can leave you in a situation where you don't know which one to go with. Here are a few tips to consider when selecting an offer.
Pick The Highest Offer
The most obvious tip will be to pick the offer that is for the most amount of money. This is the buyer that is willing to pay the most for the property, was willing to go with a higher bid, and should be rewarded by being the winning offer. Some buyers do not even list a specific dollar amount but provide an escalation clause for their offer. This means that they are willing to go above the highest bid by a certain amount of money, without knowing what the highest offer could potentially be.
However, the highest offer may not always be the best offer, which is why it is worth looking at other considerations
Pick The Offer With The Largest Down Payment
If you have two offers that are very close to each other, it can help to look at the down payment that each buyer is going to provide. A larger down payment means that the buyer is in a better financial situation, and is more likely to follow through with closing on a home. An offer with a lower down payment means that they may not have as much money to put down as they would like, and have a harder time securing financing.
Pick The Offer With The Largest Pre-Approval Amount
You can ask the buyer to submit their pre-approval letter as part of the offer process, which will show you that they are working with a lender that is able to loan them the money they need. This helps give you some peace of mind that their financing will not fall through later on in the selling process. If you see one pre-approval offer that is for a much larger amount than the price of your home, know that this buyer may have the easiest time getting their financing secured.
Pick The Offer With The Best Story
Sometimes buyers write a letter explaining why they want the house. A deciding factor may be that you want to sell the home to a family that is looking to live in the home for many years to come. On the flip side, you may want to stay away from offers that are from people looking to flip your home and sell it for an even bigger profit.
To learn more, contact a real estate agent in your area.
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