As a seller, it can be very exciting when you finally get a purchase offer for your home.
Before choosing and accepting an offer from a prospective buyer there are several important factors that you have to take into consideration.
Read more to learn about our tips for selling a house in 2022:
Has the buyer been pre-approved for a mortgage?
One of the first things that sellers should do is confirm that a potential buyer has been pre-approved for a loan. In these cases, the lender will have checked the finances of the buyer and has deemed them qualified for a loan set a certain amount.
Filing for a mortgage is complicated in its own right, and the presence of a pre-approval should be considered a sign that a buyer is serious about making a purchase. Its absence could be seen as a red flag, or, at the very least, a sign that an individual may not be fully prepared to actually purchase your home.
How much is the buyer willing to put down for an earnest money deposit?
Another factor you have to consider before accepting an offer is the amount the buyer is willing to put down for their deposit.
In real estate, an earnest money deposit is the sum a buyer entrusts to your brokerage firm to prove that he is serious about purchasing the home. This money, also known as a “good faith deposit,” will be added to the down payment if the buyer closes on the property.
In most instances, a large earnest deposit is considered a sign of a serious buyer, since a seller gets to keep the earnest money in the event that the buyer breaks the contract and walks away from buying the property.
How many contingencies are present in the offer?
In real estate transactions, contingencies are clauses in a purchase agreement that specify certain requirements – appraisals, inspections, repairs – that must be met in order for the contract to become legally binding.
If these requirements are unmet, the buyer can cancel the purchase and walk away from it with his earnest money in hand, while the seller gains the freedom to market the property to other prospective buyers.
Despite the benefits contingencies afford sellers, it is generally recommended that sellers choose offers that have the least number of contingencies, as these are more likely to net them a hassle-free transaction.
Other things you should consider when evaluating offers from buyers include their closing timeline, their financing method, and seller concessions.
Receiving a purchase offer for your home can be very exciting. However, it pays to be careful during this period — especially if you want to make the most out of your property.
If you need professional advice when selling your home, give our team at Heller Coley Reed of Long & Foster a call.
Composed of top Bethesda real estate agents, our team is dedicated to providing seamless, top-quality real estate service to both sellers and buyers in the DC Metro Area.