In today’s housing market, many sellers find themselves in situations in which they are deciding between multiple offers for their home. There are, however, several things that should be considered in addition to the amount of money being offered for the home. Here are a few:
Financing – If they buyer plans to obtain a mortgage to purchase the property, there should always be a pre-approval letter from their mortgage lender included in the offer. If the buyer’s offer is cash, require proof of funds from their bank before moving forward.
Earnest Money – Offers with larger earnest money deposits may be more reliable. Often, sellers see earnest money deposits of 1%-2% of the purchase price, but a higher earnest money deposit means that the buyer is more serious about the purchase.
Contingencies – In home purchase contracts, inspection and appraisal contingencies are usually included, which allow for the buyers to walk away from the contract if the contingencies are not met. Sometimes buyers will also include a home sale contingency in their offer, meaning that they must sell their current home to purchase a new one. As a seller, choosing an offer with the least number of contingencies will ensure the lowest possibility that the deal will fall through.
Timeline – Consider the time you need to move out of your home and into a new one. You will want to choose an offer with a closing date that suits your needs, even if it means that it might be a lower price.
For more information on what to look for in home sale offers, click here.
Are you interested in purchasing a new home in the coming months? I would love to help with your financing. Call me today.