As a homeowner who is selling your property, you’ve probably worked hard to get your house ready and price it properly. With any luck, multiple offers can come quickly. Having multiple offers is great, but it does leave you with an interesting problem – how do you know which offer is the best?
To find out which offer is the best for you, you will need to review each one carefully to determine its strengths and drawbacks. Here are four tips you can follow when evaluating offers in a bidding war.
1. Understand the Process
Before reading through the details, you first have to understand that all offers are negotiable. When you receive an offer from a prospective buyer, you have three options – you can accept it, reject it, or respond by asking that terms be modified. The third option is called making a counteroffer.
2. Create an Offer Review Process
If you are entertaining lots of prospective buyers, you have to establish a time frame during which buyers must submit offers. This gives you time to review all the offers you receive. A time frame also creates a sense of urgency, which can result in competitive bidding.
Once you set a final date for the offers, wait until after the weekend to respond. This will give you the chance to assess details and check buyers’ qualifications.
3. Set Baselines
When you are choosing which offer to take, you have to first decide what terms are the most important to you. For example, if you want to be sure that the transaction won’t fall apart because the buyer can’t get a mortgage, then require a prequalified or cash buyer.
4. Review Every Term
Everybody knows that price pulls a lot of sway, but it should not be the only deciding factor when choosing an offer. Here are some other aspects to consider:
- Is the amount of money the buyer proposes to deposit toward the down payment sufficient for you?
- Is the buyer asking for fixtures – such as appliances, furniture pieces, or window treatments – to be included in the sale that you initially planned to take with you?
- Is the buyer asking you to make concessions, like covering a large part of the closing costs? Are you willing to do it? Can you afford it?
- Did the buyer attach a prequalification or pre-approval letter, which means he or she has already been approved for financing? Does the offer include a financing or other contingency?
- Does the buyer’s proposed closing date mesh well with your timeline?
All these questions may seem overwhelming, but these will help you find the right offer for you. If you get confused reviewing the terms along the way, just ask yourself, “Is this a deal breaker, or can I compromise to achieve my ultimate goal of closing the sale?”
Once you understand the process, set your baselines and review the terms, you will be able to choose the offer that suits you and your family. If, however, you are looking for a faster and easier way to sell your Jacksonville, NC property, contact Blue Hen Homebuyers. You can reach us at 910-802-2222 or you can fill out our simple web form, and we will get back to you with an offer.