Tips for choosing the best offer for your home
Congratulations! You worked hard to get your home ready to go on the market, and that hard work has paid off. Before you start reviewing offers, use these tips to create a plan that will allow you to choose the best offer for your home.
1. Don’t take offers personally
You love your home and want its next owner to love it as much as you do. However, at the end of the day buying and selling is a financial transaction and it’s important to treat it as such. Instead of being offended that the buyers didn’t love the kitchen or entered a lowball offer, use it as a basis to start negotiations.
2. Decide what factor is most important
No single offer on your home will look the same. Because each offer will include different factors, determine in advance what is most important to you. Asking price, earnest money, closing costs, items included in the sale, financing, and contingency periods can all affect an offer. If asking price is your number one non-negotiable, for example, be prepared to be flexible on closing dates or other factors.
3. Make sure buyers are qualified
Accepting an offer from a buyer who is pre-qualified is often the best way to ensure the sale won’t fall through due to an inability to get financing. Pre-approved buyers will often include a letter from their bank or lender with the offer to show that they can afford the price of your home. Likewise, all-cash offers may include a bank statement showing the ability to pay the entire amount.
4. Review every term
It is important to carefully review every term of an offer instead of just focusing on price. The combination of all of the factors and terms in an offer can help sellers determine the best offer. A lower than asking price all-cash offer with a quick closing can be compared to an at asking price offer that includes the appliances and window treatments, for example.
5. Be creative
Even if the offers you receive are not as good as you expected, don’t forget to be creative. All offers are a starting point for negotiations; remaining flexible can allow you to successfully negotiate and accept the best offer on your home.