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Choosing the Right Offer
admin • July 12, 2019

Congratulations, you have multiple offers on your home listing. It’s exciting to hear that you have a choice in buyers. Yet how can you make sure that you choose the right offer? With varying sales prices and terms, comparing offers might be harder than you expected. Still – it’s a great problem to have.

If you find yourself in a multiple offer situation, the first step is to meet with your agent to discuss each offer in detail. What are the actual differences? It’s easy to see what price they offer, but what about the other items – the terms, the financing, the contingencies.

  • Sales Price –  This is the easiest to compare. Start with the sales price and then check to see if they are asking for extra concessions; these could include seller credits or paying for closing costs.
  • Terms –  Determine when the buyer intends to close and when they want occupancy.
  • Financing –  Financing can vary dramatically and affect your decision in choosing a buyer. For instance, a buyer who offers a slightly lower price but is going to put 50% down might be a better offer than someone using a FHA, 3.5% down loan which could be harder to close.
  • Contingencies –  Most offers come with contingencies for items such as inspections, appraisal, loan approval and more. An offer with less contingencies, or shorter time frames to remove them, could be a better offer than others.

Working with your agent, consider all the elements which go into an offer; then you’ll be in the best position to determine the best option for your financial goals, timeframes and needs.

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