October 1, 2022
Many sellers may be tempted to select the highest offer they receive, but several other factors are to consider. Here are five areas important on how to evaluate an offer.
Down payment. The size of the down payment should be heavily considered when comparing offers. It is often tied to the loan size the buyer is taking out, and a larger one indicates higher financial stability.
Earnest money deposit. The EMD is the sum of cash the buyer is willing to put up when the sales agreement is signed to show their high level of interest in purchasing the home. If they back out of the transaction without a good reason, the seller typically keeps it, and if the sale goes through, it typically goes towards their down payment.
Contingencies. Contingencies are standard for most offers and outline the evaluations and appraisals that need to be completed before the sale is final, such as financing, appraisal, sale of current home, title, and home inspection. The fewer contingencies, the higher the chance of reaching the closing table.
All-cash offer. Not only does putting down an all-cash offer boost the likelihood of loan approval, but the buyer will not need an appraisal or financing contingency, reducing the chance of the sale falling through.
Closing date. Consideration of the closing date differs for each seller. For example, if you have already purchased a new home, you may want to close quickly. But, if you are waiting on the money from the sale to start house hunting, you may be okay with a slower settlement.
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Welcome to 14361 Lenray Lane! Captivating Custom Remodeled Three Bedroom Single Family Home Located in the Heart of Cambrian with Top Cambrian Schools!
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