All Offers Aren’t Created Equal

WAIT! Before you accept that offer, have you triple-checked that it's the safest offer when you're selling your home before purchasing another? All offers are not created equally and sometimes the highest-priced offer isn’t always the one that you should take. 

If you want to discover some key things to look for when accepting one of multiple offers, keep watching. As a homeowner wanting to sell your house and purchase another, you've probably been stressing out over the fact that it's always a possibility that the buyer may not be able to close on your current home. I understand it's a valid concern and I would feel the same way! If the buyer doesn't close on your current home, you most likely will no longer qualify for the purchase of your new home. Let's look at some key things to look for when reviewing multiple offers. Have the buyers waived contingencies such as inspections or their financing? Sometimes a lower-priced offer with waived contingencies provides sellers with ease of mind that the buyers are serious and will not back out of the transaction. If they do, you will keep their earnest money and then get your home back on the market right away. What kind of financing are the buyers offering? 

Will they be using a loan to purchase your home, or do they have cash? A loan will require an appraisal whereas a cash transaction will not. In our current market, we’re seeing buyers offer far over the asking price, but the question remains, will it appraise for that value, or will you have to re-enter negotiations and potentially take less for your home? Will the buyers back out of the contract? How about the closing date? Does it match up with your desired timeframe? If your current home closes before your new home closes, where will you live during that time? On the other hand, if your new home closes before your current home closes, do you have enough funds in the bank to cover two mortgages until your current home closes? As you can see, all offers are not created equal, and the highest-priced offer may not always be the best choice for you to accept when you're selling your home and buying another. You must have someone in your corner who knows which buyer is most likely to close on your home. I'm all for a bit of gambling sometimes, but we need to be careful in choosing the right offer and the right buyer when your next house is on the line. 

If you have questions regarding what kind of offer is the right one for you to accept when selling your home and purchasing another, give me a jingle. Connect with my team today at 858-336-1114 or [email protected] and we will discuss the best strategy for you and your family.