With such a HOT seller’s market in the Chapel Hill & Triangle area that is expected to continue this year, you can almost assume that you’ll be getting multiple offers for your home when you decide to put it on the market. While it might seem like a no-brainer to choose the offer that, on paper, is the highest, there are many other factors that go into what makes an offer better than the rest. This process is both exciting and overwhelming, at times, if you aren’t sure what to look for, but thankfully there are points to consider to make it easier for you, as the seller. In addition to putting your trust in a professional local real estate agent that intimately understands the market, you may want to familiarize yourself with these offer factors!
Navigating through various contingencies
There are many contingencies that could be attached to an offer and it’s imperative that you understand just what these mean. Even in a competitive seller’s market, you can plan on seeing contingencies attached to various home offers. Don’t navigate this process on your own! Your real estate agent has the knowledge and experience to know what is best for your individual situation while keeping your financial aspirations in the forefront.
It’s hard for anyone to resist a full cash offer! While getting an all-cash offer almost guarantees it won’t be your highest offer, it does pose a great chance to be the safest one. With an all-cash offer, you won’t have to go through any of the loan-approval steps with the buyer, saving both time and the risks of potential hurdles.
Does the closing timeline best suite your needs?
The closing timeline will certainly vary from buyer to buyer, so it’s important that you pay attention to this detail. If you’re looking to close right away vs. needing time to find, or build, a new home, you’ll want to make sure your timeline priorities line up with whatever offer you choose. Keep in mind that this can often be negotiated, so it doesn’t necessarily have to be a deal-breaker.
What repairs are expected to be completed prior to closing?
It’s no secret that any buyer would want to walk into a home that has been completely repaired and updated, at no cost to them. However, this might not be practical for your finances, depending on the state of both your existing home and your future home. Make sure to take this into account, when weighing your options, if you’re hoping to sell your home as-is.
Are the buyers all pre-approved?
As you’re going through offers, one of the first things you should do is make sure every potential buyer has already been pre-approved for the amount that they’re offering. If they are not pre-approved the process could take much longer and experience unnecessary issues. There is no guarantee that a buyer will be pre-approved after their offer is accepted, which would cause a big headache for you, as the seller, down the road.
Familiarize yourself with various loan types
There are many different loan types for a buyer to choose from and some have more caveats than others. Conventional loans are usually the easiest and safest to navigate, but buyers may want to take advantage of an FHA or VA Loan as well. In order to avoid any delays that could exist, make sure to review this with your realtor and make sure you decide ahead of time which loan types you are willing to accept.
Navigating the amount of Earnest Money
What is earnest money? It’s a deposit put down by buyers when they want to show a seller that they’re interested in buying the house. The amount typically ranges, depending on your area, from about 1 – 3% of the total purchase price. You know buyers are serious when it comes to earnest money because, if they just decide to back out, without a specific reason or an issue with the home, you typically get to keep this money. To put it simply – the larger amount of earnest money put down, the more confident you can be in that buyer and their intentions to purchase your home.
It’s not uncommon for buyers to want the seller to cover some, if not all, of their closing costs, which range anywhere from 2 – 5% of the final purchase price. So, a higher offer, whether it be financed or cash, can sometimes be misleading due to hidden costs that you would be responsible for come closing.
Finally, weigh the significance of the actual offer price
It goes without saying that this is the largest factor for most sellers. If you have a pre-approved buyer who is offering a significant amount over the asking price, that is hard to pass up. Just make sure you look at all of the fine print and contingencies built into the offer before you let that amount sway you! And keep in mind: just because it’s the highest offer, doesn’t mean it’s the best offer for you come closing day.
While it might seem overwhelming to have to look through the various offers for your home, as well as the details within each, having a trusted and experienced realtor at your side, such as Masha Halpern, will give you both the confidence and guidance of knowing that you’ll come out of this with the absolute best offer on your home. It’s a great time to be a seller in the Triangle!
Are you looking to take advantage of this great SELLER’S Market in the Chapel Hill area? Get started with a FREE HOME VALUE analysis here. Have more questions? Let’s chat! Call or text Masha at 919-414-0337 or email at email@example.com