Sellers: Here's How To Tell When An Offer Is Good

You've got an offer on your listing among Beavercreek homes for sale. But is it a good one? Fortunately, there are some ways you can tell if an offer on a house you're selling is the right one.

Let's explore what our REALTORS® advise when assessing how good an offer on your home might be.

How to Rate an Offer on Your Home

1. Choose the highest offer. Or not?
   Of course, you want as much money as you can get for your home. But hold on a minute. It's not all about the highest price when you consider offers for your home. Most homeowners will want to assess what kinds of contingencies the home buyer is asking for. Contingencies have to happen before the deal goes through, such as an inspection, appraisal, or financing. The inspection contingency allows the buyer to back out if the home inspector finds a problem. A finance contingency allows the buyer to back out if they can't get a mortgage, while an appraisal contingency will take effect if the home appraisal is for less than the offer amount. It's usually better to look for an offer with minimal contingencies.
   
   
2. What about an all-cash offer?
   Although the offer may be a bit less when the sale price is offered in cash, it can still be very attractive. The seller doesn't have to wait around and see if the financing is approved.
   
   
3. When a buyer is pre-approved...
   This isn't the same as being pre-qualified. That just means the buyer will be considered for financing, not that he or she is approved. Pre-approved, however, is a good thing. It means that the seller can count on the buyer being able to come up with the financing.

4. What if you need a flexible timeline?
   It's possible you'll need to close quickly so that you can move to your next house. That means you will want to find a buyer to pay with all cash and who can close right away. You might also need to extend your closing timeline. Are you having a house built and don't know when it will be ready? A buyer with a flexible timeline, who doesn't want to close for a couple of months, could save you from having to move twice.

5. When closing costs are included...
   A high offer may include the buyer's closing costs. That could be between 2 and 5 percent of the home's price. Factor in closing costs with your asking price, and there's no reason not to look at an offer that includes closing costs.

6. Repairs may be factored in.
   The home may need some repairs. A seller may not have money to do them; a buyer who's willing to do repairs could make an attractive offer. Obviously, buyers will be getting an inspection report. Some buyers will ask you to fix some or even all repairs needed, while others won't.

7. Why a larger earnest money deposit sweetens the offer.
   An earnest money deposit is also known as a good-faith deposit. It is a sum of money the buyer offers to prove he or she means to purchase the home. It is generally 1 to 2 percent of the sale price. The higher the deposit, the more serious the offer. The earnest money will go toward the down payment once the home is closed on. But if the buyer breaks the contract, the seller may keep the deposit as consolation.

There's a lot to know when buying or selling a home. That's why you need a knowledgeable Realtor. Contact Wright-Patt Realty today.