Be ready to evaluate offers as soon as they start coming. Here are some tips on vetting each one.
- Is this the best buyer?
Sellers tend to look at the highest offer during this phase of the process. However, the highest offer isn’t always the best offer. The best buyer is usually the one who has been pre-approved for a loan.
The best buyer is someone who is working with an agent and is very clear about what they’re looking for. This individual can also close the sale quicker than anyone else who is interested in the home.
- Has this buyer obtained financing?
As previously mentioned, the ideal buyer is someone who has already obtained financing for the home. They have a good credit score and they have enough cash reserves to close the sale.
Moreover, this individual can put down a reasonable amount of money for the down payment. The higher the amount – usually at around 20% to 50% of the asking price – the more serious the buyer is about closing the sale.
This shows that the buyer is capable of taking on the financial responsibility of owning and maintaining a home.
- What are the contingencies?
There are several contingencies that you must take into consideration when selling your home. These include:
- Appraisal – The lender will hire a third party to assess the home’ market value, and if the appraisal comes in lower than the sales price, the buyer may back out of the transaction.
- Home inspection – The buyer will have the home inspected for major issues. If something needs to be fixed or replaced, they can ask that you make repairs or shoulder the cost of repairs upon closing.
- Are there any red flags?
Try to understand what motivates buyers to make an offer on your home. If the buyer gets carried away and makes the highest offer for the sake of winning the bidding war, there’s a good chance that they’ll get buyer’s remorse and back out of the deal.
- Is the buyer paying for anything else?
Will they also be buying furniture and artwork? Some buyers try to sweeten the deal by offering to pay for inclusions like the ones mentioned. Having fewer things to pack might be advantageous to you, especially if you’re moving out of state.
- How soon do you need to close the deal?
If you have a specific date by which you intend to move out, perhaps because you’ve accepted a job offer elsewhere or you’d like to move in time for your children’s summer vacation, then you might want to prioritize buyers who will be able to close quickly.
Are you ready to list your home? We’d be happy to assist you. Call us, Dave Ricordati at 630-854-7676 and Kathy Ricordati at 630-915-881. You can also reach us here.