03 Nov It’s not always about Price, when it comes to Offers on Homes

It’s not always about Price, when it comes to Offers on Homes

As the market has shifted, when considering an offer or if you are able to secure two or more competing offers for your home, price will definitely play a role. However, price isn’t the only thing you should think about when reviewing an offer(s).

1. Financing. If you get an offer with a financing condition and where the ability of the buyer to get financing is in doubt, ask for a pre-approval letter from the buyer’s mortgage lender to show that they can afford the home. Ask if the buyer has a home to sell to be able to purchase.

2. Closing date. Offer #1 may propose a closing date that’s perfect for you, while offer #2 may be four weeks later. If you have already purchased another home, you may require a month of bridge financing and if you accept offer #2 consider this cost against the offer price. On the contrary if the closing date is early and you have not purchased another home, remember you may have to incur storage costs and rental costs for accommodation.

3. Condition on the sale of a home. If an offer is conditional on the buyer selling their current property, find out if the buyer’s property has a larger market share of potential buyers than your own home, what is the length of time the buyer has to sell his house, and when it will be on the market. Are any of these terms in the offer?

4. Any other additional clauses added in the offer, i.e. number of visits, survey at seller’s expense, rental contracts to be provided in a specific time period, should be reviewed to ensure you are okay with the terms and able to meet deadlines.

We are happy to review the offer process and forms with you so that you can become familiar with the process before putting your home up for sale. Contact us with any questions!