Many sellers may be tempted to select the highest offer they receive, but there are several other factors to consider. Here are five terms to evaluate.
The size of the down payment should be heavily considered when comparing offers. It is often tied to the size of the loan the buyer is taking out and a larger one indicates higher financial stability.
Earnest money deposit.
The EMD is the sum of cash the buyer is willing to put up when the sales agreement is signed to show their high level of interest in purchasing the home. If they back out of the transaction without a good reason, the seller typically keeps it, and if the sale goes through, it typically goes towards their down payment.
Contingencies are standard for most offers and outline the evaluations and appraisals that need to be completed before the sale is final, such as financing, appraisal, sale of current home, title, home inspection, and remedy. The fewer contingencies, the higher the chance of reaching the closing table.
Net to Seller.
An all cash offer sounds great but may not be the best offer. A Net to Seller document breaks down the sales proceeds, closing costs, and existing obligations during a real estate transaction to calculate exactly what the seller can expect to make on the sale of their home.
Closing and Possession dates.
Consideration of the closing date differs for each seller. For example, if you have already purchased a new home, you may want to close quickly. But, if you are waiting on the money from the sale to start house hunting, you may be okay with a slower settlement.
Leave a comment with your biggest question – or call me, Siobhan Blake, directly at 614-371-2727 to get some expert advice!