Once your home is listed for sale and interested parties come knocking, it’s only a matter of time before the offers start rolling in. This can be an overwhelming situation, and we’re here to let you know how to choose the right offer when selling your house in Essex County. This is the part where the negotiating skills of your agent really matter! In a lot of service sectors there are different levels of skill and real estate is no different. This is a key question to ask when hiring an agent.
Pre-Approved Is a Plus
The vast majority of homebuyers will be seeking financing through a third-party lender.
During the mortgage application process, the lender is going to scour their credit and purchase history to determine if the applicant is likely to responsibly pay back the loan over time. Once that applicant is pre-approved or approved, they will receive notification of that, and you should take it into consideration when weighing the pros and cons of each offer.
Any potential buyer that backs up their offer with proof of funds should immediately take priority over other offers without any proof of funds or financing. This also goes for cash offers. A cash offer can be very appealing if they meet or exceed your asking price, but getting proof of funds remains extremely important.
Don’t let someone flashing cash cloud your judgment and remember not all pre-approvals are the same – the devil is in the details!
Measuring Their Motivation
When a potential buyer is putting in an offer, a great way to signal their good intentions and motivation is by providing what is called an earnest payment (or earnest money).
Earnest money is effectively a deposit the buyer is putting down on your house as part of their offer to make it clear they want to move forward with you by getting a more detailed look at the home. This will often lead to inspections and appraisals so all parties involved can continue hammering out negotiations with the final goal of closing the deal.
Timing Can Be Everything
When selling your home, chances are you have some form of schedule in your head for getting everything completed. Keep in mind that while you have one schedule in mind, the buyers you encounter may have an entirely different schedule in mind.
A buyer’s willingness to be flexible in setting a closing date can also be a factor to weigh in when you choose the right offer for you. Sometimes accepting slightly less money for a much more convenient and flexible closing date can take the pressure off and be worth it.
A Personal Touch
Something that often goes overlooked these days is the homebuyer’s letter.
A homebuyer’s letter is a personal letter written by the potential buyer stating why they are interested in purchasing your home. Its main purpose is to create a personal connection between buyer and seller and emphasize how much the buyer is motivated and cares for purchasing this specific property.
To some sellers, this may not seem like much, but a buyer taking the time to write a homebuyer’s letter often means they want to thoroughly express how important this is to them and can really help you choose the right offer.
Take It All in
The final step is to take everything into consideration when weighing your different offers.
The offered purchase price is one part of a larger equation and you don’t want to leave anything out. It’s imperative you take into consideration things such as contingencies for repairs and closing costs.
For example, say you have two offers that came in. One offers more money but comes with costly repair contingencies that could end up netting you less money than the other offer that is for less money but comes without any contingencies.
List everything out in an itemized manner to help visualize the costs and benefits of each offer. Get into the details and you’ll soon have the offer that works best for you.
Professional Help to Choose the Right Offer When Selling Your House in Essex County
Knowing how to choose the right offer when selling your house can be complicated. Our team offers professional, experienced help with this task, so contact us today at (978) 877-2873!