Have you had a home offer? Congratulations! What next? It’s difficult to sort through multiple offers for your house. Afraid of missing out on a good deal? We asked our agents for their expert advice on evaluating buyer offers.
It is a contract between two parties that details the agreed-upon terms and conditions for the sale of a home (or other property). Among other things, it contains the sales price, earnest money deposit, closing date, and option period.
Consider these three factors when assessing a home sale offer.
3 Choosing A Home Offer
- Closing Time: How Fast Does The Buyer Want?
When does it end?
Keep an eye out for the estimated possession date. It’s possible you’ll need to move after this date or lease the property back from the buyers.
Is this date compatible with yours?
You may need to close quickly or within a certain time frame due to external factors. For example, you may need to relocate quickly for a job or wait until the school year is over to move.
How flexible is the buyer?
Assume the buyer can be flexible with closing dates if your situation necessitates it. The buyer should be willing to work with you if you need to close quickly or stay longer.
When does the offer end?
You will receive offers with a buyer-determined expiration date. In order to meet this deadline, you as the seller must decide whether to accept, reject, or negotiate the offer.
- Confidence: Is The Buyer Qualified?
Is it cash?
Cash offers often mean a faster and less risky path to closing, which appeals to sellers and buyers alike. Because you won’t have to worry about low appraisals or third-party financing, a cash offer may cost you a lower offer price.
Can the buyer afford it?
It’s important to find a buyer who is financially stable when selling your home. The amount of the down payment, the earnest money deposit, and whether or not the buyer is pre-approved for a loan are all good indicators of financial security.
What’s the option fee?
To avoid losing their earnest money deposit, buyers have an option period. The buyer pays the seller an option fee, which is nonrefundable. In case de non-renewal, the seller is entitled to keep the deposit. It’s one of the best signals to sellers in a competitive market that the option fee is fixed.
- Cost: How Much Do They Offer?
It’s easy to understand how a buyer’s offer to buy your house will affect your sale proceeds. Always consider the following factors when evaluating an offer price:
Any closing costs offered by the buyers?
Closing costs are shared by buyers and sellers It is common for sellers to pay 1-3 percent for other closing costs in addition to the buyer’s and listing agents’ commissions.
Do the buyers offer to pay for a new survey?
Before granting a loan to a buyer, lenders typically require a survey to be completed. Title insurance companies commonly request surveys.
Do the buyers foot the bill for the survey?
Survey coverage protects the buyer from errors in the survey. This coverage is usually chosen by buyers who are relying on a seller’s survey. Buyers and sellers can agree to pay for survey coverage separately.
Is a home warranty requested?
After the sale, a home warranty covers many appliances and systems that break. Buying a home does not require a home warranty, but many buyers do so.
Contact us if you are interested in Waterleigh homes for sale.