In today’s constantly rebounding real estate market, it is very common to receive multiple offers on homes during a transaction. It is not as bad as you may think? I don't disagree it may be hard to manage, but with a few simple steps you have in no time get things organized and stay on top of things. It is always recommended that you take your time in understanding the offer and do decide in a rush. It is a no-brainer that the highest offer is the best to finalize; but sometimes it is better to consider other options too. Some of the other factors are;
Is Your Buyer Pre-Approved?
It’s all very well and good to get an offer on your house, but offers often fall through and you don’t want to take your house off the market only to have that too-good-to-be-true offer vanish. Accepting an offer from a pre-approved buyer means that a mortgage lender has already agreed to cover the cost of your home. If none of your potential buyers are pre-approved, you need to get some info about their finances and also set a time limit for your buyer to apply for and obtain the necessary loan before you finalize your agreement.
Is Your Buyer Also a Seller?
For many buyers, the ability to purchase your home is contingent upon the sale of their own home. If any of the offers you receive are contingent on such a sale, this is an automatic red flag since that seller’s risk becomes your own, as well. If you are still considering accepting such an offer, better look into just where their home is located, how long it’s been on the market, and whether the sale is being handled by a good Realtor® since all of these factors will affect just how soon their home sale is likely to go through.
How Big Is the Down Payment?
An offer by itself is just a piece of paper and a handshake, but an offer accompanied with cash completes everything officially. The higher down payment a potential buyer is willing to make the more serious he or she is about purchasing your house. A down payment from 20% up to 50% is often the best way to confirm that the prospective home buyer is not just serious but also can afford to buy your home.
Who Pays the Closing Costs?
When it comes to closing, buyers and sellers both have costs to cover. While sellers pay the real estate agent’s commission, buyers have a laundry list of fees to pay for such items as a credit report, a home appraisal, a title search, and the cost of hiring a real estate attorney to draw up the sales contract. Some buyers, however, may ask the seller to cover all or part of these costs, which typically range from 2-5% of the purchase price. So it is always a great idea to educate your clients.
Is There Anything Else the Buyer Wants You to Pay For?
Some buyers may also ask you to cover other costs as a contingency of their purchase agreement. They may ask you to purchase a home warranty policy, which can range from about $350 up to $800 or more, or they may even ask you to undertake some major home repairs prior to closing. When it comes to those repairs, bear in mind that having these done will not only affect your profit margin on the home sale, but also your timetable. If you need to sell your home as quickly as possible, go for the offer where the buyer is willing to take your house “as is.”
What Stays and What Goes?
Typically, when you sell your home, you leave all of the major appliances in place – the stove, refrigerator, air conditioning units, etc. If you have a buyer who also wants your furniture, curtains, and/or throw rugs, you’ll have to keep in mind the replacement costs for any of these items and subtract it from their offering price to determine the real value of the offer.
What’s the Sell-By Date?
If you have a particular date in mind by which you need to sell your house, perhaps because you’re taking a job on the other side of the country or you’d like to move during the kids’ summer vacation, then you may need to let the proposed closing date figure more heavily into your considerations than the offering price. If the closing date should come before you’re ready to move out, check to make sure what the lender’s rent-back policy is (or if they even have one). Rent-back refers to the amount of time you’re permitted to stay in your home after the close of escrow, and a typical time frame is 30 days, although some lenders may allow up to 60.
It is not complicated as it may sound? An experienced real estate professional is always familiar with all of these issues you can always consult me here