If you are in the position to be seeking advice, either from this article or elsewhere, then congratulations. If you have a list of home offers to sift through and you are unsure how to pick the best one, then you can at least take a moment to congratulate yourself that all your hard work has paid off in the form of considerable interest in your property. Those renovations have been successful, the home viewings have impressed, and you have managed to reach a broad range of potential buyers on the market. The hard part is most certainly over.
However, you’re not quite finished yet. Selecting the right buyer for your home is actually not as simple as looking at the offers and picking the one that’s the highest. You might have a few buyers offering the same amount. Moreover, there are always the additional costs to consider, the logistics of the move (and the timescale thereof), and several other technicalities of the sale which can threaten additional time and money.
CityHome Collective, a real estate brokerage Salt Lake City specializing in the luxury homes and condos recommend that the best way to ensure you pick the best buyer is to consult the real estate agent who has been working with you throughout the selling process. Not only will this person have all the details of the sale, but they will also be able to retrieve the information that matters most from potential buyers and liaise effectively with their agents. Here, then, are some things to consider:
Be Careful with Bidding Wars
Starting a bidding war between the buyers might seem like a great way to get them to up their game and come through with the most competitive offer, but you should be careful here. Bidding wars may also see the price get to such a point where buyers – even if they can afford it – believe the price does not match the value of the property. This can then lead them to walk away later. Impulsive offers are also likely – and these could eventually fall through.
Consider What Offer Will Be Most Profitable in the Long Term
It’s tempting to simply pick the offer that delivers most of the cash up front, but this is not the best way to make the most money from your property. Instead, you should take into account how much buyers are willing to pay then subtract the cost of taxes, fees, mortgage loan interest, and closing costs that you will also have to pay. Certain deals might be contingent also on specific home improvements, which involve others costs you will need to take on board.
Look Who has the Fewest Concessions
And speaking of necessary home improvements, you should look for the buyer who is demanding the fewest concessions to close the deal. These can take the form not only of additional renovations but also percentages of the closing costs. It’s important to think about the final figure after the concessions have been provided for. You should also consider how much extra work these concessions might entail.
Choose the Most Flexible in Terms of Timing
The problems with buyers who want to take their time before getting to the closing stage of the deal is that more time means more uncertainty. For example, they might be taking time because they need to sell their home first or they may need the extra time to get the money together.
In conclusion, the main take-away here is not to be blinded by an attractive offer figure. There is always much more to consider.