4 Factors Sellers Should Consider in an Offer | DOBI

4 Factors Sellers Should Consider in an Offer

What To Look for When There is Multiple Offers

If you’re selling a house these days, there’s a good chance you’re getting more than one offer. But you don’t want to look at just the money.

We’ve put together other factors you should consider before choosing a buyer.

Look at Contingencies

A lot of buyers write their contract and include terms you may not like. Hurdles, like an appraisal contingency can happen, if the bank doesn’t think the house is worth enough then they won’t finance the entire loan. Some buyers will make their offer contingent on selling their current home. That can work out great if the buyers offer enough money, but also gives them the option to back out. Here are  a few of the most common types of contingencies you can expect to see:

• Appraisal Contingency: Ensuring the home appraises for the agreed price.
• Contingency Clause: Such as selling current home.
• Financial Contingency: Contingent on the buyer securing financing.
• Inspection or Due Diligence Contingency: Home can be inspected in a specified time period by buyer.

Scott Pulus, agent here at DOBI, said the most common types of contingencies we are seeing today is the contingency clause, when the buyers need to sell their current home first.

Financing Option: Loan Vs. Cash

Take a look at how the buyer will be financing their purchase, whether that be an all cash offer or through a loan. Does the buyer have the funds in place to purchase your home? Be sure to look for a strong pre-qualifcation letter. Or, if they are presenting an all cash offer, ensure they have that money.

If you are in a hurry to close on your home, a cash offer may be more appealing as loans require more time and approvals as well as an appraisal.

Closing Timeline 

Consider the ideal closing timeline for you. Do you want the money as soon as possible, or do you want a longer close date so you have time to move? Take a look at the offers you receive and which fits best with your desired timeline. The typical close time can range from 30-90 days.

After you accept an offer from your buyer there are a few things that will happen. Your agent will order a title search, to ensure you’re the legal owner of the property. There will also be a home inspection and lender appraisal, all of which will happen within the window you accept an offer and get to the closing table, so keep that in mind any delays can affect the closing timeline.

More Earnest Money

For buyers, an Earnest Money Deposit (EMD), essentially acts as a deposit on the property you’re looking to buy. The buyer delivers the amount when signing the purchase agreement or the sales contract, but it can also be part of the offer. The seller and buyer will also sign a contract that defines the conditions of refunding earnest money.

Earnest money protects the seller if the buyer backs out. More earnest money shows the buyer might be a in a better financial position but also shows they may be more serious about your home, so consider that when looking through your offers with your DOBI agent.

These are all things to keep in mind when reviewing offers with your DOBI agent.