4 Things Other Than Money That Sellers Should Look For In An Offer

Congratulations! You're already making great progress in making the most of what is probably your biggest asset. But sometimes, it's necessary to stand back and realize that your bottom line shouldn't be your only factor in choosing an offer.

The conditions that a potential buyer includes in the offer frequently also matter. They can highlight how many obstacles you'll have to overcome to get to the negotiation table quickly. Therefore, before choosing a buyer, every seller should carefully consider an offer—beyond the dollar amount.

We've identified four crucial elements that house sellers should look for in an offer to help you manage all of this. Here is all the information you require to make the best choice.

1. Learn more about your preferred financing option.

Most likely, as the seller, you have a target offer amount in mind that you want the purchaser to reach or beat.
No matter what figures are bandied around in an offer, a buyer must nonetheless demonstrate that he has the money to pay for the item.

A pre-approval letter on the letterhead of the buyer's lender should always be included in an offer if the buyer plans to obtain a mortgage.

And before accepting a cash offer from a prospective buyer, request proof of money. Typically, this documentation will take the form of a bank or investment account statement.
Each one should demonstrate that the buyer has the money required to finish the deal.

Want to sell your house quickly? If so, you could choose an all-cash offer. Since there is no waiting for a buyer's full mortgage approval when an offer is made in cash, it typically carries less risk and has a shorter escrow period.

But beware: Buyers who are paying in cash have negotiating power.
They'll also typically want something in exchange for bringing a bag of cash to the sale.
For instance, they might provide you with a lower offer than you requested.
So be sure to balance the pros and downsides before choosing an all-cash offer versus one from a buyer who has a mortgage.

2. Look for a larger earnest money deposit

The next thing you might want to do is choose an offer that includes a sizeable earnest money deposit, commonly referred to as a good-faith deposit.
A buyer will give this amount to the seller's real estate agent to demonstrate his commitment to buying the house.

It's typical to require a deposit between 1% and 2% of the sale price.
However, the offer is stronger the higher the deposit.

If the buyer ultimately closes on the house, the earnest money deposit will be applied to the down payment.
On the other side, you could be able to keep the deposit as a kind of compensation if the buyer breaches the agreement and refuses to purchase the property.

3. Lessen your contingency planning

An adequate evaluation of your property must be performed in the case of an appraisal contingency.
You and the buyer will need to agree on a new price before settlement if the appraisal differs from the agreed-upon price of the house.

The caveat in this situation is that whenever a condition cannot be met, the buyer has the option to back out of the deal and keep his earnest money deposit.

Of course, from a seller's perspective, the fewer opportunities the buyer has to back out of the deal, the better.
In light of this, you should pick the deal with the fewest conditions from the beginning.

The offer you choose should have as few conditions as possible, exactly like the sale price.
Due to this, cash bids are frequently accepted, even when the sales price is lower.
A cash offer reduces the danger that the deal will fall through because the buyer can't obtain financing or the appraisal value is less than the sale price, in the opinion of the seller.

4.Choose the appropriate deadline for closing.

Finally, think about the best time to go to the negotiating table.
Particularly if you've lived in the house, you're selling for a time, moving out requires a lot of labor.
To that end, you'll want to be sure that the offer you select has a closing date that meets your requirements.

Timing is crucial.Many sellers want a rapid closure, but some need more time to move.

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