How Do I Evaluate An Offer?
Well, as the story goes, there’s more to an offer than the price tag. You may be wondering, “How do I evaluate an offer?” Some factors you should consider include:
Is this offer at, near, or above my asking price?
Every sale is different. Have a price range in mind you would be willing to sell at. In general, you should not list your home at a lower price than you would like to sell it for. Consider each offer seriously. Remember the price on the offer does not show the whole picture of a contract. Ask you realtor how a buyer’s loan type and closing needs might affect your bottom line.
Are there clauses and additions in their offer that change the terms and final price substantially?
Compare the risk and likelihood of a completed sale for each buyer including things like “contingencies”, where your sale depends on their sale. and whether they’re pre-approved for the offer they’re making. Some buyers need special stipulations or contingencies to be accepted along with their price. Often times these contingencies can be reasonable or workable. Other times they are deal killers. Contengincies can include closing costs, hoa approvals, or even repairs. Make sure you look over and ask about any contract additions.
How long since I had another offer, or expect another offer? Can I wait?
Remember every month you’re probably still paying the mortgage, taxes, and insurance. If you have several offers, remember that an offer isn’t a completed sale. Looking at the expected closing date is wise. Also, ask your agent if they accept any closing delays with a particular offer. Furthermore, a delayed closing can jeopardize the purchase of your new home. These are all factors that can make it worth considering different offers.
Remember you have three options for an offer – accept it, reject it, or counter it.