When you are selling a home, it is exciting to have a few offers come through because it means that you are getting closer to closing on the property. As these offers are received, how do you know which offer you should select?
As with other steps in the real estate process, it is essential that you are working with an experienced real estate agent who can offer advice along the way. There are many stages to buying or selling a home. An experienced Atlanta real estate agent can help you know the best methods to improve the outcome of the sale.
What to Look for in an Offer
These are a few things that should be considered when you are evaluating each offer:
- Financing: Will the buyer be paying cash for the deal or will they be going through the process to secure a mortgage? The loan approval process can be burdensome and delay the closing. So, if there are two comparable offers and one of the buyers can pay with cash, then the best option might be to choose the cash offer.
- Proof of Funds: Additionally, you need to verify that the buyer has the funds that they are promising. Proof of funds might be in the form of a letter from the financing company that verifies the mortgage size that the buyer will be qualified to receive. Or, if could be a letter from the bank verifying that the bank account has sufficient cash.
- Deposit: A bigger down payment is usually an indicator that the buyer is interested in the property. Failing to put the deposit money into the escrow account is a red flag that either the buyer doesn’t have the money, or they aren’t committed to buying the home.
- Timeframe: An unreasonable timeframe might bring skepticism, especially if you suspect that the buyer is pushing the date back for any reason. There are several variables that might impact the timeframe for closing. But, if the timeframe is several months away, then you might consider another offer that will be able to close sooner.
- Unreasonable Contingencies: It is normal for contingencies to be included in the initial contract. Look at the reasons for the contingencies as well as the dates for the contingencies to avoid problems that will push back the closing date. Also, consider whether the buyer wants certain things fixed or replaced. These costs can add up, especially if the buyer is being picky about the things they are requesting.
Just because you receive an offer, doesn’t mean that you should accept it! Sometimes, it might make sense to decline a bad offer and wait for the right one to come along. For more information about selling your home, talk with Duffy Realty of Atlanta. Call us at: (678) 318-1700