In a seller’s market, you’re often fortunate enough to get multiple offers on your property. You may even feel overwhelmed at the amount of interest you see in your home. How can you decide which offer to accept? While the amount of the offer is important, other factors may be even more critical for a smooth sale. Here are some things to look for in a buyer’s offer before you decide to accept, reject or counteroffer.
Do They Have Financing in Place?
Many buyers are already preapproved or at least prequalified for a home loan before they submit an offer on a property. However, some buyers don’t wait for preapproval before they go house-hunting. They may be in process and decide to look at homes. They put in an offer and then are later denied or approved for a lower amount. If this happens to you, as a seller, you must start all over again with a new offer.
Cash is Still King
Don’t worry about financing at all if you can find a cash buyer. They already have the money in hand or an investor backing them with funding in place. If you do choose a buyer who is getting financed, look for someone putting at least some of their own money down. They have more to risk and will be more diligent about doing what is necessary throughout the process.
You may even want to consider a lower offer from a cash buyer because you don’t have the concern about financing falling through. This becomes a bigger concern if you have a deadline of when you need to sell because you’re buying another property or because you live out of state and don’t want the hassle to deal with.
Consider the Closing Date
Another criteria to look at in a buyer’s offer is the requested closing date. A buyer who puts a closing date out far in the future is a red flag. They may be waiting to sell their current home or trying to get financing in place. Unless it benefits you to wait, it’s best to go with an earlier closing date.
Cash buyers will often have the earliest closing date because they don’t need to wait on financing. It’s possible to close on a house with a cash buyer in a couple of weeks. Reduce your risk with a shorter contract period.
If you have a home to sell, talk to Quick Home Offers to find out how they can help you sell quickly with less risk. Contact us today at (805) 870-5749.