Multiple offers are the norm in today’s market. As a seller, how do you choose the best deal? Many sellers think that the highest bidder will win, however, that’s often not the case.
Here are some other considerations that should be taken into account while evaluating any offer:
- Type of loan – is it CASH? Then yes, that is probably the best offer. Is it a Conventional loan, VA loan or FHA loan? We would need to dig deeper into the contract and look at specifics.
- Closing Date – How soon can the buyer close? Be sure to verify that the buyers can close on the property within a reasonable time frame. A good time frame is around 30 days from accepting a contract, but some terms may differ where you would need more time.
- Buyer’s Financial Stability – You should be concerned about the financial strength of the buyer. The seller should ensure that they have a letter of qualification and/or preapproval letter from the financial institution or mortgage lender; if you believe the letter is questionable, request permission to contact the professional to ensure that the offer is reliable.
- Contingencies – The majority of buyers include a contingency in their offer. Contingencies are a contract allowing the buyer to get their home under contract within a specific time frame then they can move forward with purchasing the home. Inspection, financing, and appraisals are the most common contingencies.
Sellers need to evaluate all the facts when choosing an offer to accept. The RED Team is a trio of professional realtors who can help sellers make these tough decisions. We are trained to make sure you get the highest and best return when selling your home!