Comparing multiple offers can be a complex process for sellers. The habit is to focus strictly on price, but that can be a mistake. There are several different facets to an offer that sellers should consider in order to select the best offer. This blog contains advice on comparing multiple offers on West Newbury MA homes for sale.
Advice On Comparing Multiple Offers On West Newbury MA Homes For Sale
It is normal for conditions such as an inspection and mortgage approval to appear in an offer. Sometimes special contingencies are added by buyers. Contracts with fewer conditions are more likely to close and to do so on time. Furthermore, some conditions are more risky than others and may be dependent upon the status of the real estate market.
There is a dramatic difference between a pre-qualification and a pre-approval, especially when comparing multiple offers. A pre-approval is traditionally granted after a mortgage company verifies the credit for a buyer. A pre-qualification entails no such verification. Pre-approved buyers are, therefore, better positioned to get final approval for a loan. Sellers will waste valuable time from buyers who cannot get financing and back out of a purchase. The type of mortgage is also important since some mortgage products have strict requirements on the buyer and property, or can take longer to process.
Deposits express the good faith of a buyer. It also protects a seller from a buyer backing out from a purchase for a reason unrelated to contingencies. Lastly, the dollar value of deposits may indicate financial position. The amount of deposits must be carefully evaluated in comparing multiple offers for these reasons.
Considering More Than Just Price
Sellers should avoid making price the primary factor in 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 property. Furthermore, a home that gets relisted after an offer falls through may sell for less since buyers have the impression that something must be wrong with it. A skilled real estate broker can help you carefully consider all the terms of contracts and accurately weigh them. This blog with advice on comparing multiple offers on West Newbury MA homes for sale was prepared by John Wells at Wellsco Realty.