|You decided to sell your home and have listed it with a reputable, professional Realtor. At the moment the market is still in your favor, (if you want my opinion about the market check-out this post). Here are some factors to keep in mind besides the money offered for your home. |
You most likely end up with many great offers on your home. Choosing which one will benefit you most has a few key factors. The type of financing, earnest money deposit and contingencies can have a big impact on the process. Some sellers want a quick closing or more time to coordinate planning a move.
Thinking about these items thoroughly will save you from missing out on getting what you need out of your biggest asset. One of the best things you can do before you list your home for sale is to have a home inspection. In today’s market buyers are looking for homes that are move-in ready. Homes without blemishes – inside or outside. Having a pre-listing home inspection helps you to remove any problems that are likely to be revealed when a buyer does his inspection. Don’t get me wrong, you can sell a house in any condition, you just sell it for a little less if it is a little sub-par (even in this market).
If a potential buyer makes a cash offer, ask for proof of funds before accepting it. This proof will usually come in the form of a bank or investment account statement. Each should show that the buyer has the funds necessary to complete the transaction. When you have a potential buyer that intends to get a mortgage, there should always be a
pre-approval letter included in an offer on their lender’s letterhead, which is different (and stronger) than a pre-qualification.
Also you may want to pick an offer with a sizable earnest money deposit, also known as a good-faith deposit. This is a sum of money that a buyer sends to escrow to prove that he is serious about purchasing the home. A deposit that’s worth 1% to 2% of the sale price is normal – remember this quote “The higher the deposit, the stronger the offer.” Of course, it is usually refundable for a period of time
You might want to consider offers with less contingencies, which are the benchmarks buyers set that need to be met for the transaction to continue moving forward. For example, many buyers will want to include an inspection contingency in the purchase contract. This means the buyer will need time to have your home inspected. And if any issues are found, a buyer might ask you to make repairs or provide a credit. If there is an appraisal contingency, a satisfactory appraisal of your property must be conducted. If the appraisal doesn’t match the agreed-upon price of the home, you and the buyer will have to reach a new agreement before settlement.
The stipulation here is that anytime a contingency can’t be satisfied, the buyer has a chance to walk away from the purchase with his
earnest money deposit in hand. Obviously, from a seller’s point of view, the fewer chances the buyer has to exit the transaction, the better. With that in mind, it may be a good idea for you to select an offer that has the fewest contingencies from the start. No matter how attractive the price is, if the buyer does not complete the purchase, it won’t matter. This is why cash offers are often accepted, even at a lower offer price. Sellers see a cash offer as removing a lot of the risk of the transaction falling apart due to a buyer’s inability to get financing or the appraisal value coming in below the sale price.
Last but not least is considering your optimal timeline for heading to the settlement table and moving out. Moving out is a lot of work, especially if you’ve lived in the home you’re selling for a while. To that end, you’re going to want to ensure that you choose an offer with a closing date that suits your needs. Often, a seller will move out, and then close the sale, however, you may want to ask to move out after the sale, to make the transition to your next property smoother. If you hire me to be your agent, we will go over all of these options (and more) as I help you navigate the process. You should know I get sellers more than most other agents, so you probably at least want to interview me.
Do you have a need for commercial/industrial/retail buildings or land? Are you ready to buy or sell a home? Do you want a guaranteed cash offer? We can help you with all of that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com Choose to have an amazing day….Jeff