With every sale it is human nature to seek the highest possible return. This is the case whether you are selling an old CD or a piece of real estate. While the highest offer may seem like the best one to take this is not always the case. The most important item with any offer is to make sure you actually close. If the highest offer is full of holes and ends up not closing you may never get back the offers that you didn’t accept. Knowing what to look for on every offer will give you the best chance in accepting the best offer for you.
Before you can evaluate offers that come in you need to establish what is most important for you. Getting the highest offer is great but you may place a premium on closing quickly over the net return. If you are looking for the smoothest transaction possible you will look for borrowers with an increased down payment or even a cash offer. Whatever is important to you this should be your starting point when reviewing incoming offers.
In addition to the purchase price dates, down payments, contingencies, credits and inclusions can all change from buyer to buyer. Some buyers can have a sterling prequalification letter but want to close in 60 days. Others are looking for steep closing costs credits that you may not be interested in giving. There are some buyers that want certain items updated or replaced before they move in. Of course you can always counter their terms but these conditions are just as big a part in deciding between offers as the asking price. Again, the most important thing with any offer is that they actually close. If you know there are items in your property that could make getting a loan difficult you can opt for the security of a cash offer at a reduced price. Going through an offer is much more than just looking at the asking price.
With any negotiation there are times when you should be prepared to be flexible. This doesn’t mean you need to cave in from what you really want but there should be some degree of give and take. If you are looking to close in 21 days you may have to accept something that the buyer finds important to them. The longer your home is on the market the less negotiating power that you are perceived to have. This is why choosing the best offer as soon as your home is on the market is so critical. It is very rare that a buyer will come back to you sixty days after their offer is rejected. If they do you can believe it will not be at the original terms they offered.
With the help of a good realtor you can evaluate every offer that comes in and determine its strengths and weaknesses. Getting the most for your property is great but closing at a number you are comfortable with is more important.