If you received two offers on your house that were $5,000 apart, you should take the higher one, right? Not so fast.
Sure, money plays a huge role in your decision to accept an offer, but it shouldn’t be the only one. Here are some other questions to ask:
Does the Buyer Have the Money?
Without cash or a letter from a lender, your buyer may not be able to afford the price he’s proposing. Your Realtor® can help you tremendously by making sure that anyone who places an offer on your home is qualified.
How Much Earnest Money is Included?
Earnest money is an amount a potential buyer will put towards the sale in advance of the closing to show he’s entering into this transaction in good faith. A high amount of earnest money usually indicates a serious buyer. If the transaction closes, the money counts toward the downpayment; if it doesn’t close, the seller in some circumstances gets to keep the earnest money.
When’s the Closing Date?
Determine if the timeline for the transaction matches your schedule—you and the buyer may have deadlines that don’t mesh well.
Is the Buyer Asking for Anything Unusual?
Buyers can put all kinds of things in an offer. They can request an option to terminate, ask for repairs, see if you’ll leave the appliances, and make the offer contingent upon the sale of their current home. Your Realtor® can help you decide what is reasonable.
It’s a wonderful feeling when someone presents you with an acceptable offer for your home. Just make sure you understand all parts of an offer, not just the dollar signs.