Choosing the Best Offer

The real estate market is shifting and while homes are sitting on the market an average of ten days longer than they were this time last year, homes ARE still selling. And, oftentimes, these homes are seeing multiple offers. How should you as a seller field these different offers? Here are a few things to consider that aren’t just about the dollar signs. 

Financing Methods 

Odds are you have a desired number in mind when you list your home. It’s only natural to hope to make a profit! However, with so many different types of financing, it’s best to be overly cautious before counting your chickens. Isn’t that the saying? If a buyer is using a traditional mortgage, require a preapproval letter as part of an offer. Or, if a buyer is making an all-cash offer, require proof of funds before accepting. An all-cash offer can usually expedite the buying process but buyers may also want something in return. Weigh all the pros and cons when considering different financing types. 

Earnest Money 

Next, consider going with the offer that has the higher earnest money deposit. Also known as a good-faith deposit, this is an amount of money given by the buyer to prove they are serious about going through with the sale. This is often liquid cash given directly to the seller. Typically, these deposits range in the 1-2% of the sale price, though the higher the deposit, the more serious the offer. Choosing the offer with the higher good-faith deposit generally means that the sale is more of a sure thing. Additionally, if the sale falls through for whatever reason due to fault of the buyer, sellers potentially keep this deposit. 

Closing

Timing a move from one place to another can always be a major headache. As a seller, you do hold quite a bit of power in your hands, though. When considering offers, feel free to lean towards offers with closing dates that meet your needs. You might need a quick close or perhaps you desire an extra-long escrow period. The say is yours!