Here are three things that matter in an offer besides the purchase price.
There are three things that you should be looking for in every offer on your home, besides price, that will help you evaluate whether it’s a strong offer or not:
1. The buyer’s approval. This is the most important item. 90% of buyers will have a loan approval contingency with their offer, which is their way of asking you for 21 days to shop around for rates from different lenders before they lock their financing in. The other 10% of the time, the buyer has already passed this step and is making an offer without contingencies. There is a form they have to provide and check a box if their offer is contingent upon them getting approved for a loan. Offers without contingencies are always stronger than those with them.
2. Is the buyer asking for closing costs? This amount is usually specified in the contract. Just because someone is offering the asking price doesn’t mean you will be getting that. If they’re also asking for $5,000 to $10,000 back in closing costs, you have to subtract that from the offer price to get your net profit.
“Offers without contingencies are always stronger than those with them.”
3. The closing date. Most closings happen within 30 to 45 days. If the date is beyond that time frame, you should look further into the offer and see why they’re asking for such an extended closing.
I hope this information was valuable to you. If you have any questions for me about this topic or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
