When you decide to sell your home, getting the highest price possible is definitely the first thing on your mind. After all, you likely have a mortgage to pay off and maybe a new home to buy. In the current Charleston real estate market, multiple offers aren’t uncommon. You might feel like you have the pick of the litter when presented with multiple offers; however, pay close attention to what each buyer proposes. Accepting the highest offer is not always the smartest move. Savvy sellers and agents know not to jump the gun and give an automatic yes to the highest bidder. Here’s how to look past the dollar signs and pick out the important details.
Determine whether the sales price is sensible. While offers above asking price are certainly attractive, it’s entirely possible that your home might not appraise for that amount. If the home doesn’t appraise for the agreed-upon amount, chances are the buyer won’t be able to get financing and won't go through with the purchase.
Beware of contingencies. These are added into contracts as protection for buyers and sellers. Sometimes, a buyer will present an offer for full asking price or above but add a lot of contingencies that they know will give them room for renegotiating. In the end, you might end up making more concessions than you would have with a lower offer and could net less than you thought when all is said and done.
Look closely at the buyer’s financing. Which buyer is most qualified? Which offer looks like it will close more quickly and easily? A cash buyer, for example, will be able to close more quickly than one with a complicated loan.
Will the home be a primary residence or an investment? What is the buyer’s motivation? A highly motivated buyer means that the transaction is likely to close on time. A longer escrow period might be okay with some buyers and sellers, as in an investment deal, but others might be in a time crunch and need to close as quickly as possible.
When you take the time to mull over the offers you receive when selling your home, you’ll see that each one is different. Selecting the highest offer might come with a price. Read the contents closely and consider what each buyer is asking for compared to their proposed price. Now, having said all of this, it’s not a given that the highest offer will definitely have more stipulations and concessions. Sometimes, the highest offer IS the best; but oftentimes, those buyers who offer full price or above will ask for more concessions.
What’s your opinion? How many concessions are too many when it comes to choosing the highest offer? Would you rather end the deal with more money in your pocket or have a smooth, worry-free road to closing? Tell us in the comments below!
