In a tight market, receiving an offer on your home can feel like a huge relief, and the pressure to jump at the highest number is real. However, knowing how to sell a house for the best overall outcome means looking past the highest number alone. A home offer is only the first step in the selling process, and there’s more to evaluating it than the sale price. A lot of sellers don’t realize how many factors beyond dollar value can affect whether a deal actually closes. In this blog, we’ll break down what goes into a strong offer outside of its monetary value, and how to determine which one is truly the best fit for your needs.
Why You Should Evaluate an Offer Beyond the Price
Most importantly, sellers should know that a submitted offer is not a guarantee for a home sold. There are potential pitfalls for any deal to fall through between an accepted offer and closing day. Evaluating each of your offers with your agent based on factors like contingencies, inspections, buyer financing, and the closing timeline is an important step in reducing that risk, and avoiding costly surprises later in the process.
What Makes a Great Offer?
When selling a home, your agent needs to know how to weigh the pros and cons of each offer that comes in. Buyers looking to buy your house may approach the deal differently: a cash offer, for example, may be worth prioritizing over a higher financed one because it typically means a shorter closing timeline and less risk at appraisal. On the other hand, if you’re purchasing another property at the same time, an offer with a lower price but a faster closing could reduce the financial burden of potentially carrying two mortgages at once.
4 Key Factors to Look for When Comparing Offers
Financing Type
Cash offers for your home outweigh financed offers almost every time because of the reduced risk and faster timeline. Some sellers also receive direct offers from investors or cash buyers looking to close quickly, bypassing the traditional mortgage process altogether. Without a lender involved, there’s no appraisal contingency, no financing to fall through, and no one delaying the process.
Closing Date
People sell for a lot of reasons, many of which are time-sensitive life changes such as a job relocation, supporting a family member, or a changing financial situation. Whatever the reason, a buyer who can close quickly may change the overall value of an offer once you factor in risk and convenience.
Contingencies
As a seller, you’ll want to consider the contingencies that often come with closing, such as appraisals and inspections. When you receive multiple offers, some buyers may be willing to waive certain contingencies to stand out from the competition. It can be worth accepting a lower offer with fewer contingencies to avoid unexpected costs after inspection, since those repairs could end up costing more than the difference between offers.
Net Proceeds
It’s important to estimate your net proceeds after closing costs, commissions, concessions, mortgage payoff, and other expenses. A lower offer with fewer concessions or lower closing costs could ultimately put more money in your pocket than a higher offer – making net proceeds, not just sale price, the number that matters most.
Get the Best Offer for Your Home
If you’re selling or thinking about selling, knowing how to navigate the process – from listing photos to negotiating the final offer – is complex, and it helps to have an experienced guide. Contact me today so I can help you evaluate every offer and get the best outcome for your home!