Selling a property is not always easy. If you have not been through the process, don’t worry! We are going to break down one of the major steps for you. For those of you who have sold a home before, do not let yourselves get overly complacent. The laws, regulations, real estate market, and formalities change over time. Your Realtor should be able to bring you up to date.
It is best to break down the home selling process step-by-step, piece-by-piece. The process of evaluating an offer is not always easy. Understanding the key points will help you keep order to the chaos.
Timing of Offer
It is not very difficult to attract buyers in Connecticut who desire the suburbs during this challenging time of Covid-19. The highest and best offers are often being presented in days, if not hours, and competition is fierce. However, taking a more passive approach and waiting for an offer that better fits your needs is a tactic to consider.
Let’s say you’ve just listed your home for sale, and you receive a quick offer. Great! But it is 10% below asking price! Maybe not too enticing, after all it has only been 2 days.
On the other hand, if there little or no interest for your property, and a price reduction is out of the question, you then need to consider your options. An offer 10% below might be something to entertain or at least counter offer.
Strength of Offer
Offers come in all shapes and sizes, but also in different levels of reliability.
Some offers just make sense. An example would be a Buyer downsizing their home. Since they are selling their property, they are more likely to have the resources to complete the purchase of yours. You can also make proof of their sale a requirement in the purchase/ sale contract.
Some offers often do not make sense. An offer with a mortgage pre-qualification from an unknown online mortgage company might not be the best option vs a mortgage pre-qualification from a known, reliable, and local bank. The same with money down. It is better to accept an offer with 20% down than an offer using borrowed money as a down payment.
Don’t be afraid to be ask questions and seek documentation when appropriate.
A real estate offer is a binding contract and has many moving parts. Dates, prices, terms, conditions, obligations, inspections etc. A single non-negotiated detail can prevent a home from closing. We have seen deals fall thru over seemingly minor details or when emotions take over. The buyers might have a home to sell first to be able to afford a new one or maybe they need a seller concession that you are not willing to make.
Read the fine print, understand it completely, and be sure the details are sufficient to proceed.
The average time of selling a home from start to finish is usually about 90 days. Depending on your circumstance, the timing of when a Buyer can close can be of value and importance to you. Do you need move right away and a Buyer can close within 45 days? Or do you still need to more time and need to wait the 90 days or beyond?
Don’t feel guilty. The sale price is playing a major role in your decision to sell to your home. Getting the highest price possible should be the priority of any home seller and the Realtor working for them. Make sure to take into consideration things such as if a Buyer is asking for Seller concessions and what your closing costs are going to be.
The Big Picture
At the end of the day, step back and take a deep breath. Re-read all your offers. Make a list of each offer’s strong and weak points. Evaluating an offer is no easy task, even for a trained professional. Weighing every factor is easier if you understand your particular home selling wants and needs along with the offers and options available to you.