Weighing Offers on Your Home

With historically low mortgage rates and limited housing inventory, it’s a seller’s market. The fall continues the trend and leaves buyers searching for homes. When do you consider other factors than just a buyer’s bid? Antonella Dininno, Sales Associate at ERA Justin Realty weighs in on how to weigh an offer.

Highest Offer

“Obviously, the best dollar offer will catch your eye,” says Antonella. “But sometimes, there are other factors, such as the buyers’ terms that can influence the decision.”

Conditions

Buyer A offers the highest amount for your home, but there’s just one condition, you have to move in 10 days. Or maybe she wants a 5% credit for closing costs. Buyer B offers slightly less than Buyer A and has no strings attached… Your real estate agent will help you calculate how each offer benefits you and ensure you get the best deal for your sale that meets your needs.

Contingencies

Contingencies are the clauses that find fault with the home or financing that let a potential buyer break the contract. If any of the following fall through, the deal is dead:
● Mortgage approval. Pre-approved buyers or cash offers will always have an advantage
when you’re weighing your offers.
● Home appraisal—if less than the valuation of the home, no deal.
● Home inspection. If significant defects are revealed, the buyer can bail.
● Clear Title. Owner must be able to prove they have the right to sell the property.
● Home sale. Buyer has to sell her own home before purchasing yours.

“Obviously, fewer contingencies or no-contingency offers will have an advantage for the seller,” adds Antonella. “A professional real estate agent will help you weigh each of these options when the offers roll in.”

Cash versus Financed

If a buyer is paying cash, the process of selling your home will move more quickly. When a buyer is financing through traditional means, there are more regulations. The buyer must be pre-approved and the lender can reject a mortgage application for various reasons. Also, if the appraised value comes back less than the asking price, lenders will not make up the gap; a cash buyer might, especially in a hot seller’s market. Real estate is complex because it involves the two major parties—the buyer and seller, and then all the related parties—mortgage lenders, appraisers, inspectors—that affect your home sale. The best way to simplify this process is to work with a real estate professional.

Call Antonella or any of the knowledgeable sales agents at ERA Justin Realty at 201-939-7500
to guide you through all the ways you can optimize the sale of your home.