Getting multiple offers on your home is a good position to be in. It suggests the market favors sellers and your home has attractive qualities to different types of buyers. But is the offer for the most money the best offer? Not always. Here are some suggestions on how to decide which offer to accept in Floresville or your Wilson County house.
Financing the Purchase
Buyers finance homes in a variety of different ways. Sellers are not privy to who has good credit or not, but they do have some control over understanding who is a stronger financial prospect. After all, nothing is worse than getting to the end of a 45-day escrow process to realize the buyers didn’t qualify for the loan and the mortgage won’t fund. Starting the marketing process over and waiting for a another buyer is something that sellers don’t want to be to do. They may have already started moving and making other financial obligations or even purchased another home that they need to close on.
This is why cash offers hold so much weight when deciding the best offer. Many sellers will accept slightly lower sales prices with the knowledge of cash coming in to close. Aside from cash, buyers with pre-approval letters mean they have gone through the loan underwriting process and meet loan needs. These are stronger than pre-qualification letters which only mean buyers got a ballpark idea of their qualifications. While an agent does not know every lender or their track record in accomplishing closings, there are many that they have had experience with. Based on past experience they can guide you as to what they know what the lender and their ability to get the loan processed. A lender that the listing agent knows and feels confident of goes a long way to making a seller feel more secure with the financing. While not all lenders can control all situations, many have proven track records to bring people to the closing table. I have seen what seemed to be miracles with some buyers.
Sellers can often be concerned with the inspection process of a home sale. Any older home will have things that might need some work. How buyers respond to inspection reports can kill the deal or create negotiation points costing thousands. When buyers are willing to waive inspections or reduce inspection periods, this becomes a favorable contract term for sellers. It means the buyers know old properties have problems and don’t intend to nickel and dime sellers. Yet it can also be a negative because the buyer is going into the purchase without a better knowledge of the property and may get cold feet later on in the process.
The length of time for contingencies is a big factor in defining favorable terms. As already mentioned, the inspection period is one. Another key contingency is funding. While a 30 day escrow with 21 day funding contingency is normal, some loans cannot be closed that quickly so a 45-day escrow with a 21-day funding contingency is common. That still gives sellers time to move after confirmation that the loan is approved and ready for funding. Sellers are required to be out of the house the day before closing with all agreed upon repairs completed and the house broom swept clean. That means clean and no leaving trash behind.
The Overall Package
When considering offers, the sellers’ personal situation is also a factor. How fast does the home need to sell? Maintenance expenses, property taxes, a divorce, probate and estate taxes might accelerate the timing need or even define the minimum sales price. A seller with a new job in a new city that needs to relocate might affect the time line and reasons for accepting an offer that closes faster. Some sellers can’t move until the home is closed and need a buyer willing to do a rent-back with enough time to allow sellers to coordinate moving.
Agents need to discuss all factors in offers with sellers to help them decide what is the best course of action for their situation. It is possible to counter-offer a solid offer that just doesn’t quite meet one or two needs. Good selling agents go back to offers and explain the multiple offer situation, explaining the need and seeing if buyers will come back with a best and final. This often gets sellers where they want to be, using other buyers’ offers against the top offers.
Are you ready to get offers for YOUR Floresville property? We can help! Send us a message or give our office a call today! (210) 216-7722
As the Floresville Real Estate Agent – Faye Y Taylor is here for your questions and for help