How to Assess a Buyer’s Offer When You Sell Your Home
The goal of every homeowner selling their property is to receive an offer that results in a sale, however many go into the sale process without knowing how to evaluate a purchase offer.
By the end of this article, you will have a better idea of how to assess an offer on your home whether it comes through a realtor or through a home-buying company.
Assessing Offers When You Sell Your Home with a Real Estate Agent
A real estate agent is a sales professional whose services you enlist to help manage and guide all parts of the home sale process.
The agent understands your local market (presumably). He or she will draw on analyses of real estate activity in your area to determine if it is a buyer’s market or a seller’s market. These analyses help when it comes time to assess purchase offers.
If it’s a buyer’s market, you may be willing to make more concessions in order to make a sale. If it’s a seller’s market, you may be able to ask a higher price for the property or be firmer on the items you want to be included in the contract.
Assessing Purchase Offer Details When You Sell Your House
Is the Buyer Pre-Approved?
If you’re lucky enough to have a buyer who can pay cash for your house, you can skip this detail. However, most buyers must finance the purchase of your property through a bank loan. Look for a pre-approval letter from the buyer’s bank accompanying the purchase offer. This confirms that the buyer should be good for the purchase.
Look for Contingencies
Some buyers cannot purchase your home until they have sold their own. This makes the sale process more complicated should you accept their offer. Request information on the status of their home sale. Is the property listed? Do they have any serious offers? Closing date set?
Offer contingencies often include inspections. Look closely at what inspections the buyer is requesting and who is named to foot the bill. The purchase offer may be contingent on more than one inspection, including home, septic, well water, structural, chimney, and pest.
Repair Allowances for Home Buyers
Purchase offers will frequently include requests for allowances or credits if the buyer sees that something in the home must be repaired or replaced. Big ticket items may be an aging roof or air conditioner or septic system. A buyer may also request the seller pay all or half of the closing costs.
How Much is the Buyer Offering?
What number is the buyer offering to pay for your house? How much is he or she willing to put down in earnest money?
Dates in the Purchase Offer
Do the dates in the purchase offer work for you? The dates could be a deal-maker or a deal-breaker depending on what your situation is, especially if you need to sell quickly.
Options After Receiving an Offer
If the offer is for an acceptable amount and all requests and contingencies are workable, you can accept the offer. If the offer contains terms that are unacceptable, you can make a counteroffer through your realtor.
Assessing Offers When You Sell Your Property to a Home-Buying Company
Homeowners who want to sell a home quickly or sell a house easily may choose to go directly to an investor for a sale.
Home buying companies take the work out of selling a property. We Buy Houses Houston buys properties in Houston and many other cities in the United States. We buy houses just as they are, with no requirements for fixes or repairs. We Buy Houses Houston is rated A+ with the Better Business Bureau and has contributed $26 million to the marketplace through the purchase of Houston properties over the past decade.
What to Consider When Assessing an Investor’s Offer
Homeowners considering selling the property to a house-buying company, whether to We Buy Houses Houston or another investor, should consider the following when entertaining a purchase offer:
- If selling this way will enable you to sell your house fast
- Traditional sale costs you are avoiding
- If this sale will help you avoid a foreclosure
- If this sale will free you from a stressful situation
- If you trust the investor
The guidance in this article should enable you to assess your purchase offer regardless of its source and make a decision that will move you forward.