Selling a home is one of the biggest life transitions anyone can experience, and in today’s market, the process is even more complicated. With the demand for homes so high, sellers should be prepared to receive bids from multiple buyers. While this may seem like a good problem to have, deciding between multiple house offers isn’t simple. The Jana Caudill Team offers advice for choosing the best offer. Here’s what sellers need to consider when choosing between offers.
The highest bid will catch your attention, and that’s especially true if it is well above the listing price. However, the highest bidder may not qualify for the necessary mortgage. That’s why sellers should compare offers alongside the terms of the whole contract with the help of a real estate advisor. For example, think about the size of the down payment the buyer intends to make. A larger payment and a lower home loan mean that the buyer is more likely to qualify for the mortgage.
When a buyer places an offer, they typically provide conditions that let them back out of the deal if they are not met. A few examples include a successful home inspection, an approved mortgage, or receiving a certain appraisal for the home. If you are selling your home, keep in mind that when a contract has fewer contingencies, there will also be lower chances that the buyer will cancel the deal.
Consider How the Buyer Will Pay for the Home
If the buyer is planning to purchase the home in cash, then there’s no need to worry about the mortgage since they will be more likely to close on the home. You might ask prospective buyers to show that they have enough assets or savings to pay with cash.
Generally, however, a buyer will have to get a mortgage. If so, you’ll also need to consider if the buyer’s home loan is pre-approved. Buyers who have been pre-approved for a home loan can provide a stronger offer than buyers who haven’t made financial arrangements.
Ask the Buyer If They Could Close With a Low Appraisal
After the lander orders the appraisal, the buyer might need to pay the difference in cash from the bank if the offer price is higher than the appraised market value . You might give preference to a lender who can prove they have the savings to pay a low appraisal.
If you are trying to move out as soon as possible, you might lean towards the buyer who has been pre-approved for their mortgage and is ready to close within weeks. But if you would like additional time for any reason, you might choose a buyer who can provide those accommodations. Buyers typically let the seller live in the home for up to two months after closing. This is known as rent-back, and it’s become increasingly popular in the post-pandemic market.
Selling a home is undoubtedly one of the toughest moments a homeowner will go through. But the process doesn’t have to be overly complicated. Working with a talented real estate agent lets you select the best offer based on your family’s needs. Call us for an appointment with our real estate agents. The Jana Caudill Team looks forward to helping you with this important transition!
