Evaluating multiple offers can be a confusing process for sellers. The tendency is to focus solely on price, but that would be a mistake. There are many different facets to an offer that sellers should weigh in order to determine the best offer. This blog contains details on evaluating multiple offers on MA homes for sale.
Details On Evaluating Multiple Offers On MA Homes For Sale
It is typical for contingencies such as an inspection and mortgage approval to appear in an offer. Sometimes special contingencies are added by buyers. Offers with fewer conditions are more likely to close and to do so on time. Furthermore, some contingencies are more troublesome than others and may depend on the activity in the real estate market.
There is a dramatic difference between a pre-qualification and a pre-approval, particularly when comparing multiple offers. A pre-approval is typically issued after a lender checks the credit for a buyer. A pre-qualification involves no such verification. Pre-approved buyers are, as a result, more likely to get approved for a loan. A buyer who cannot get financing will back out and require the seller to find a new buyer for the property. The type of loan should also be analyzed since some have strict guidelines on the borrower and property, or may take longer to process.
Deposits demonstrate the good faith of a buyer. It also protects a seller from a buyer backing out from a purchase for an unauthorized reason. Lastly, the amount of earnest money may reflect financial stability. The amount of deposits must be closely evaluated in comparing multiple offers for these reasons.
Price is Relative
Sellers should not make price the primary consideration when comparing multiple offers, particularly if closing on-time is a concern. Delays can be costly and therefore affect the net earnings from the same of a home. Furthermore, a home that reactivates after a deal falls through may sell for less due to loss of momentum. An experienced real estate agent can help you carefully review all the specifics of offers and accurately compare them. This article with details on evaluating multiple offers on MA homes for sale was prepared by Christopher Graves at Emery Federal Credit Union.