How to Evaluate an Offer on Your Property
Did you know that the average home buyer searches for their “perfect” home for 8 weeks?
If your home is currently on the market, you might think that accepting the highest offer is best, but we are here to share our tips on how to evaluate an offer before making a decision.
We put together this short guide on how to decide whom to sell your home to.
Read on for our top tips about selling a house to the best person out there.
Identify the Best Buyer
One of the first things you will have to do is see which buyer has gone through the house on several occasions and has made their presence known. The best potential buyers are not necessarily the highest bidder on your home.
The best buyer will also be working with a local agent and will be pre-approved by a local mortgage company.
Look for Red Flags
One major red flag to look for is who made the highest offer. If you think that the buyer that made the highest bid made the offer because they wanted to be the winners of a bidding war, then that’s a major red flag.
The chances of them backing out of the deal are higher.
Pay attention to the contingencies when you are selling your home. Look at the appraisal contingency. This is a third party that is hired by the lender which will evaluate the market value of the house.
If for some reason the home is less than the sale price, then it allows the buyer to back out of the deal and not pay any penalties.
Another contingency you want to pay attention to is the mortgage contingency. This will ensure that the person that you sell your home to will be able to afford it.
Mortgage contingencies protect the seller and the buyer from entering into a sale without the right loan.
Let’s say a person is looking at houses for sale here, and they find their perfect dream home, this does not mean that they can afford the house they are looking at. This is why you want to make sure that your potential buyer agrees to a mortgage contingency.
If the target closing date the potential buyer has in mind doesn’t work for you, then you might need to re-evaluate. This is especially important if you are selling your home and buying a new one.
In the event that the target closing date doesn’t work, you can request a post-closing possession until your new home is ready to be closed on.
Ready to Evaluate an Offer on Your Property?
We hope that now you have learned our top tips on what to look for when you evaluate an offer, and you can feel more confident with selling your house. We wish you all the best in the sale of your home!
Feel free to continue browsing the rest of this section for our latest home selling tips.