10 proven strategies to secure the best offer when selling your home
According to real estate agents affiliated with the National Association of REALTORS, an average of 3.5 offers were received for each home sold in June 2023. With multiple offers often on the table, it’s crucial to know how to distinguish the best one. Should sellers choose the highest offer, or is there a different approach to identifying the most favorable offer? This article highlights expert tips to help you select the best offer for your home.
Understand the Procedure
- Every offer in the real estate world is open to negotiation, an important point your real estate agent will highlight. Upon receiving an offer, you have the freedom to either accept, reject, or engage in negotiation by proposing modifications to the terms, known as making a counteroffer.
Establishing predetermined criteria for what terms are most important to you is essential. For example, if price is the top priority, you need to be adaptable regarding your closing date. Conversely, if you prioritize assurance that the deal won’t collapse due to the buyer’s inability to secure a mortgage, opting for a prequalified or cash buyer becomes imperative.
Develop a Procedure for Reviewing Offers
- If you expect multiple offers for your home, collaborate with your real estate agent to set a specific timeframe for accepting offers. This allows your agent to effectively market your home to a wide pool of potential buyers while giving you the opportunity to assess all received offers thoroughly.
Assess the Buyer’s Financial Position
- When evaluating offers on your home, it’s essential to consider more than just the amount. Understanding the buyer’s financial stability is essential. Opting for the highest bid may seem appealing, but it’s crucial to ensure the buyer can complete the transaction. Taking the highest bid could backfire if the buyer’s financial situation isn’t solid. Overbidding without adequate financial backing could lead to loan issues or even cause the deal to collapse.
Moreover, certain loan types, like FHA or VA loans, may involve lengthy approval processes. To make an informed decision, look at whether the buyer is preapproved for a mortgage, the type of loan they’re securing, the earnest money offered, and whether they’re proposing an all-cash deal. These factors can help you select the most suitable offer, particularly if the buyer can provide an all-cash offer, eliminating lender complications.
Maintain Objectivity Throughout the Process
- While selling your home can stir emotions, it’s crucial to approach it as a business transaction. If buyers criticize certain aspects of your property, such as an outdated kitchen, leading to a low offer, avoid taking it personally.
Instead, view it as a negotiation strategy and respond accordingly, focusing on finding common ground to reach a mutually beneficial agreement. Your real estate agent can provide valuable support and guidance throughout this process.
Thoroughly Evaluate Each Offer’s Terms
When assessing offers for your home, it’s crucial to evaluate every term beyond just the price. Consider whether the buyer is requesting any property or fixtures, such as appliances, furniture, etc., to be included in the sale that you intend to keep. Additionally, examine the earnest money amount proposed by the buyer. Is it sufficient to show their commitment to the purchase?
When assessing offers for your home, it’s crucial to evaluate every term beyond just the price. Consider whether the buyer is requesting any property or fixtures, such as appliances, furniture, etc., to be included in the sale that you intend to keep. Additionally, examine the earnest money amount proposed by the buyer. Is it sufficient to show their commitment to the purchase?Review whether the offer includes a prequalification or pre-approval letter indicating the buyer’s financial readiness. Note any financing or other contingencies that could introduce uncertainty into the deal. Furthermore, assess whether the proposed closing date aligns with your timeline and whether you’re comfortable with any concessions requested by the buyer, such as covering closing costs. Ultimately, weigh each factor carefully to determine if it meets your goals for closing the sale.
Looking for a trustworthy realtor in Morris County? Contact Jackie Scura. We are an experienced team of real estate professionals who provide expert guidance and support throughout the home-selling process. Call us at (973) 604-8868 for more information.
