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What Home Sellers Should Look For In An Offer
It's exciting to receive an offer on your home but deciding whether or not an offer is worth accepting isn't always easy. While offer price is an important factor, there are actually several things sellers should consider when evaluating the strength of an offer. Real estate transactions can be tricky, and many times it's in the seller's best interest to accept offers that are most likely to make it to the finish line. However, every seller's situation is different, so be sure to think about what is most important to you and discuss it with your real estate agent.
When clients want to immediately accept the highest bid, our real estate agents always encourage them to consider these factors:
- The Closing Date
When submitting an offer, buyers will propose a potential closing date. Some buyers are in a hurry to close, while others may need to sell their homes first. As a seller, it's important to choose an offer with a closing timeline that works for you. If you receive multiple offers with similar prices, but one is more in line with your closing timeline, it may be the winner. - Earnest Deposit
Earnest money is an initial deposit made by the buyer as an act of good faith. If a buyer backs out of the deal for any reason other than what's covered in the contract, then you may be entitled to keep the earnest deposit. A typical earnest deposit is usually 1% to 3% of the offer price, and serious buyers may even go higher — especially when bidding on some of these amazing Nassau County homes for sale. Choosing an offer with a higher earnest deposit could help reduce the risk of the deal falling through. - Financing
The type and quality of a buyer's financing is an important part of the picture too. The last thing you want is for the buyer's financing to fall through days before closing. This scenario is less likely to occur with a buyer who puts down 20% on a conventional loan with a reputable lender. - Contingencies
Offers often come with a series of contingencies. If contingencies are not satisfied, buyers have the opportunity to back out of the deal without losing their earnest money. Common contingencies include a home inspection, pest inspection, and appraisal contingency. However, buyers can also request additional inspections or even ask you to leave certain appliances. An offer with fewer contingencies is going to be more appealing. - Seller Assist
It's fairly common for first-time buyers to ask sellers to cover some or all of the closing costs. Closing costs are fees associated with the real estate transaction, and they can range from 3% to 7% of the sale price. A high offer price might not be as attractive if the seller is asking you to come to the table with cash upfront.
Real estate offers can be complex, so we always recommend carefully reviewing every offer with your real estate agent. Contact us for more tips on how to sell your home today.