Sometimes a seller waits weeks or even months for the first bid just to be hit with multiple house offers all at once. Sometimes, when it rains, it pours. How do you choose the best bid for your Fulton county home? Experienced real estate agents will advise you to consider all the information presented because the offer with the highest price isn’t always the strongest.
Cash vs. credit
Receiving a bid at or above asking price is wonderful, but a seller must also evaluate the underlying financial strength behind the highest offer. Buyers making a cash offer are viewed as more reliable than those presenting mortgage financing because liquid funds are readily available without a loan-application process. When buyers do need to finance part of their home purchase, a prequalification or preapproval letter can help increase the validity of their offer. Prequalifications and preapprovals show that buyers have completed some of the preliminary work for obtaining a mortgage and have received an independent opinion of what they can afford. Generally a larger down payment will also increase the strength of one bid compared to another with less money upfront.
Buyers may ask for certain contingencies to the sale when they present a written offer. From a seller’s point of view, fewer contingencies equate to a stronger offer. No one wants to go through all the work required to complete a settlement only to find out that the buyers never sold their previous home and cannot complete the purchase. In addition, waiving certain inspection contingencies or agreeing to buy a home as-is may result in a lower-priced offer. However, sellers can take comfort that any issues with the house cannot be used as an excuse to delay settlement.
Demonstrating a willingness to work with the seller’s specific requests can also help a buyer’s position. For example, a seller may list a home for sale but not want to move until the end of the school year. A buyer who is willing to accommodate this timing may be viewed more favorably. Sometimes, intangibles are enough to push one offer over another in a seller’s mind. A personalized letter or the offer to honor a special request may boost a buyer with a lower bid.
If you’re a seller who’s received multiple house offers, ask you real estate agent to guide you through the decision process and help you select the strongest offer with the best price. In the end, both the buyer and seller must feel comfortable moving forward. The seller must be happy with the sales price of their home in order to ensure a positive settlement.
A competent agent, or better yet, a seasoned team of licensed contract negotiators who singularly specialize in getting properties to go under contract, working on your behalf in a client relationship, is your best bet at navigating a favorable outcome in your sale when deciding between competing offers in now what has become a hot Atlanta seller’s market.
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