Considering several offers can be a confusing undertaking for sellers. The tendency is to consider just the price, but that can result in issues. There are a variety of different terms in an offer that one may consider to determine the best offer. This article contains an overview of evaluating multiple offers on MA homes for sale
An Overview Of Evaluating Multiple Offers On MA Homes For Sale
Financing Pre-Approvals
A pre-qualification is much different from a pre-approval, particularly when evaluating different offers. Pre-approvals are typically prepared after a mortgage company checks the credit history of a buyer. There is no level of credit check for pre-qualifications. Pre-approved people are, as a result, more likely to get approved for a mortgage. Sellers will lose valuable time when the other party is not able to obtain financing and must therefore cancel the deal. Due to this risk, sellers do not typically rely on pre-qualifications.
Conditions
It is standard for contingencies such as an inspection to be included in an offer. Frequently special terms are included by home buyers, such as a home sale contingency. More conditions mean more risk of the deal falling through. Certain situations are more troublesome than others and might be effected by the activity in the real estate market.
Escrow Deposits
Earnest money demonstrate the seriousness of a home buyer. It also covers a seller when the other person terminating a deal for a reason not related to contingencies. Also, the dollar value of deposits can reflect a buyer's stability. For the above reasons, the dollar value of deposits can make a difference in situations where there is multiple offers.
More Facts to Consider
Sellers should avoid making price the primary factor in reviewing more than one offer, particularly if closing quickly is a goal. Delays can be expensive and thus can lower the amount of money a seller may realize from the sale. Additionally, a property that comes back on the market after a deal falls through may get sold for less since buyers may assume that something must be wrong with it. A skilled real estate broker can help you carefully evaluate all the specifics of offers and properly compare them. This article with an overview of evaluating multiple offers on MA homes for sale was prepared by Peter DaMore at Law Offices of Peter T. DaMore Jr..