As a seller, when you have put a lot of effort and time into making your house shine, nothing can feel more gratifying than receiving multiple offers for the property. Trying to decide between the offers can be tough. There are several factors to consider when trying to determine what offer is the best; it is not always just the highest offer price. Here are some questions to ask yourself in order to determine what offer is best for you.
The first thing that you should do when you receive multiple offers on your home is to sit down with your Realtor® and get the important details from these offers. When my clients have multiple offers, I like to write everything down on a sheet of paper, so that it is easy to compare offers. It keeps us from having to search through all the offers to locate details.
What is the offer price?
Price is important. Write down the offer price for each of the contracts. Sometimes, though, the highest offer price is not the best offer. It’s important to read through the offer for your home and see what deductions might come off of this offer price.
Are there requests for closing cost assistance?
Buyers might request that sellers provide closing cost assistance. If you agree to this, then this dollar amount will be deducted from your profits. Sometimes buyers may offer more than list price because they are in need of closing costs.
How are the buyers purchasing the home?
If the buyers make a cash offer, then closing can be done quickly. If the buyers are using a mortgage, it typically takes between thirty to forty five days for the paperwork to be processed before closing can happen.
Is the buyer well qualified for a mortgage?
As a Realtor®, I also talk with the mortgage lender to make sure that the buyer doesn’t have any glaring obstacles that could prevent the buyer from purchasing the home. It is important for sellers to know that the mortgage lender has confidence that in thirty to forty five days, the loan will close.
When do the buyers want to close?
Typically, buyers will request a closing date that is in line with the thirty to forty five days that it takes to process a loan. Sometimes, buyers request a closing date that is further out or might even ask for a post occupancy agreement depending on their current living situation.
Who is paying for inspections?
A home inspection is typically paid for by the buyer. Other inspections have some flexibility to who can cover the costs of the inspection.
Will the offer price match with the appraisal price?
Remember a few years ago when buyers were making offers way over asking price in order to secure a home? This sometimes leads to issues when the appraisal price for a home is less than the offer price. Banks will not lend a buyer more than the appraisal price on a home. There are several different ways the gap between these two values can be addressed. Your Realtor® should advise you if there is any concern that the offer price is higher than the appraisal.
Having answers to these questions can help you examine each part of an offer and determine which one is best for you. Sometimes after you deduct closing cost assistance, the bills (taxes, utility bills for the home, ect) associated with an extended closing, or other factors, sellers find that the highest price offer isn’t the best one for them.
