6 Tips for Choosing the Best Offer on Your House

Melissa Hill

05/26/22

The recent years have been truly exciting for home sellers. Home prices are on the rise, and there are not enough homes on the market to keep up with the demand. This is why many sellers are getting numerous offers from prospective buyers. Naturally, one would assume that the best move is to pick the highest bid. However, this is not always the case. When selling your house, you want to take into account various factors, and the price is just one of them. Here are some tips for choosing the best offer on your house and how to make one of the most important decisions with ease.

1. Take into Account the Buyer’s Method of Payment

     Choosing the best offer on your house is trickier than it seems. One of the things you need to consider is the buyer’s method of payment:

Cash offer—When the potential buyer wants to pay in cash, it is your safest bet. You do not need to worry about the whole ordeal of getting a mortgage approval. Under these circumstances, the purchase is more likely to close than in other cases. The buyer will need to provide proof of assetswhich will give you security in the transaction
 
Loan—In the majority of cases, a buyer will need a mortgage. This is where you need to ensure that the buyer is preapproved for the home loan. This type of buyer is stronger than the one who has not arranged to finance.Even if the offer is more attractive, it might end up falling through
 
Lender—Another aspect of importance is the mortgage company a buyer plans to use. Is it a well-known lender in your area? Does the lender have a reputation for being able to close deals quickly? The lender’s reputation can help you decide as it is less promising if the buyer chooses a lender you have never heard of. Ensure you do some research with your real estate agent or ask the buyer for more information
 
2. Consider Closing Timelines

You may be excited about moving into your new home, or you simply need to sell your current home for financial reasons. This might motivate you to close as quickly as possible. In this case, a cash buyer who can close the quickest will be your best option.

However, you might be in the process of building a new house and do not know when it will be done. Under these circumstances, you might need an extended closing timeline. An offer by a buyer who does not want to close immediately might save you from having to move twice.

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3. Do Not Disregard the First Offer When Choosing the Best Offer on Your House

This situation can be problematic in more ways than one. If you are in a competitive market, it could go both ways. Your first offer could be fantastic, but you might be reluctant to take it because—what if it only gets better the more offers you take? But what if that offer is never topped, and you end up leaving your home on the market for too long unsuccessfully?

Luckily, your real estate agent will have ways to help you with this decision. There are particular circumstances when you should consider that first offer:

When you have strategically put the house on the market at the best time of year, i.e., the beginning of January
You have received a cash offer that involves one less contingency
If you are pressed for time and selling your house quickly is the priority
When you have already found your new home, and you cannot simultaneously pay the two mortgages
 
4. Consider Contingencies

As important as money is when choosing the best offer on your house, it should not be the deciding factor. Another thing to keep in mind is what buyers are asking for or contingencies. They refer to the conditions the buyer and seller have to meet. Therefore, if one of you does not follow through with the contingencies, the buyer can back out of the deal. Contingencies can include finances. For instance, the buyer does not have a loan yet and may not be able to buy your house. A contingency can consist of a home sale, where the buyer will want to sell their home before buying your house. It could also pertain to repairs. They may want you to replace the roof or make other renovations before buying. Ultimately the contingencies can make or break the deal. If the buyer is making too many demands or does not want to agree to yours, it could be a waste of time.

5. Look at Concessions

Potential buyers may want you to include specific things into the offer, which is not unusual. It could be your furniture or the appliances. These are referred to as concessions, and it is when you pay their closing costs for them.

Do not allow yourself to overlook these buyer requests, as they could cost you more than you think you will be making on the sale. Realistically, buyers will always make a few requests, which is perfectly fine. However, the more contingencies and concessions they include, the more likely it is for the deal to fail. With the help of your real estate agent, choose the deal that makes the most sense overall.

6. Do Not Let Emotions Get the Best of You

Selling a home can be one of the most emotional experiences for an individual or a family. It could be the most significant sale you will ever make. So naturally, you will get overwhelmed when choosing the best offer on your house. If you prepare yourself ahead of time and try your best to see it as a business transaction, the decision will be much easier to make. Give it all you have to stay clearheaded and look for support from your friends and family. Doing so will help you in the process and make you happier in the long run.

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