Negotiating the Purchase Offer: Price is not all that Matters for Sellers
Receiving an offer to purchase your home is thrilling. After months of planning, preparing, and marketing, you have finally connected with the right buyer. Somebody out there thinks your home would be a desirable place to relocate their family and they have even taken the time and effort to put an offer in writing to purchase your home.
It's a time of anxiety, elation, satisfaction, and relief. Unfortunately, you may be a little quick to celebrate. We recommend that you hold the champagne for a minute to make sure you've considered what matters when negotiating a real estate contract.
We've listed a few questions you can ask yourself when negotiating a contract.
What is an acceptable offer?
A lot of variables go into determining what qualifies as an acceptable contract offer. And, believe it or not, price may not be the overriding variable when it comes to determining what an acceptable offer is. Let's start with the basic elements of the sales contract.
Is the offer in writing?
Real estate contracts have to be in writing before they are binding on the parties. If someone makes a verbal offer to purchase your home, they probably have no obligation whatsoever to go through with the transaction.
Because of this, I don't even consider verbal offers a part of the negotiating process. If a buyer is seriously interested in a property, they will take the time to put the offer in writing. So, my advice is to ignore any verbal offer you receive. A caveat: verbal countertoffers may be considered as a precurser to getting the final contract in writing. But that is pretty far into the process!
Has earnest money been paid?
Real estate offers should be accompanied by earnest money or a good faith deposit. The higher the amount of earnest money accompanying the offer, the more serious I consider the buyer.
When a Realtor is involved, the earnest money check will be made payable to a Brokers Escrow account where the funds are not be distributed without agreement between the buyer and seller.
If the purchaser defaults on their obligations in the contract, the earnest money stands as liquidated damages in most contracts. This provides some assurance to the seller as they know they will get some return even if the buyer evaporates into thin air.
Escrow accounts are trust accounts governed by State Law. Consult your attorney for clarification on how escrow account distributions are made.
When is the closing date?
Are the buyers going to close in a reasonable amount of time (typically 30 to 45 days)? If the time goes past 45 days, I start to worry about pulling a home off the market. What happens if the buyers fail to close the contract and the home has been off the market for 90 days?
When do you have to move out of the house? If the closing occurs before your new residence is available for occupancy, can you rent the home back from the buyer for a few weeks or months? Closing dates are negotiable and sellers should make sure the date meets their expectations.
What are the cutoff dates for inspections and approval of inspection reports?
Most buyers today want to have a home inspector take a close look at the condition of a home before they purchase. They will inevitably have a punch list of repairs they want the seller to make before they are willing to close on the home.
The important consideration for a seller here is to make sure they know about these repairs as quickly as possible after the contract has been signed. A cutoff date for inspections ranging from two to three weeks is adequate for most homes. And, a cutoff date of 1 week after the receipt of the inspection report for approval of repair items by the seller is reasonable.
Most sellers don't want to take their home off the market any longer than 30 days for the entire inspection process. If you fail to reach an agreement with the buyer as to which items should be repaired, you can put the home back on the market and only 30 days will have been lost in the process.
Who is responsible for repairs?
Sellers should make themselves aware of items they warrant versus items that are being sold "as is" in the contract. If a clause specifies that the roof must have 12 years of functional life left in it, you want to make sure you know how much it would cost to replace the roof if it is deemed to be obsolete. Do your research and homework now. Don't wait until after you have signed the contract.
What are the contingencies for the transaction?
The contingencies you usually hear about involve a buyer having to sell their existing home before they can close on the new home. But, contingencies can include any number of other items such as inspections or financing.
Are these uncertainties you can live with? Are the cut off dates for contingencies clearly specified and the method of delivery of notification specified? Do the research on these contingency items.
Find out if the buyer's existing home is under contract, listed with a Realtor, or if it's just sitting without any activity. Ask for written verification when you are concerned about ambiguity. Change the contingency language in the contract if it is not clear and direct.
Do the purchasers have the financial wherewithal to purchase your home?
How much money are they putting in the down payment? Have they been pre-qualified by a lender and do they have written verification of their pre-qualification?
If it is a large quantity of cash, do they have written third party verification of funds to settle the contract? Make sure you are dealing with a legitimate buyer and not someone who has no setbacks if the transaction doesn't work out.
Is the seller being asked to pay a portion of the closing costs?
How much? Is the cost specified as a percentage of the loan amount, or is it a set dollar limit?
It is not uncommon for buyers in the Atlanta market to ask for assistance with closing costs, but the amount paid by the seller is negotiable. It should be considered along with other financial items in the contract, including price and cost of repairs.
Be aware that some buyers, who are stretching themselves on a small down payment, may require closing cost assistance from the seller. However, these buyers should be more willing to pay closer to the asking price.
What other issues is the seller responsible for?
Do you have to pay for an appraisal, survey, or home warranty? If yes, how much will these items cost? How long does it take for a vendor to make the item available? Home warranties are common in our market as a method of protecting sellers from irate buyers after the closing. Sellers can buy a lot of peace of mind for around $400.
Is my seller's disclosure statement made a part of the contract offer?
This could be important to settling disputes arising from hidden defects down the road.
Finally, how much are they offering for the home?
Is it a reasonable price? Does the sales price meet my financial needs for paying off mortgage loans and purchasing a new residence?
We will talk more about price and negotiation in the next post: Negotiating the Purchase Offer: Price Does Matter
SALLY ENGLISH and The English Team
SALLY ENGLISH and The English Team are experienced real estate negotiators. We specialize in homes convenient to Emory University and the Centers for Disease Control. Call us at 770-939-3174 or email sallyenglish@englishteam.com to get started buying or selling your Atlanta Georgia home.
Sally English and The English Team. Atlanta real estate agents
Realty Associates of Atlanta; 3350 Northlake Parkway Atlanta, Georgia 30345 |770-939-3174
View more of SALLY'S BLOG: Sallys Atlanta Real Estate Updates
EMAIL SALLY: sallyenglish@englishteam.com
Visit our WEBSITE: http://englishteam.com/ | http://sallyenglishblog.com/
All content copyright © 2009-2011 by Sarah Bryant English DBA Sally English and The English Team, Atlanta Georgia. This sale offering is made subject to errors, ommissions, change of price, prior sale and withdrawal without notice. Potential purchasers should make a physical inspection to verify all features independently. EQUAL HOUSING OPPORTUNITY. Sally English is not an attorney or CPA and ALL legal or tax advice should be rendered by a professional. Sally English is an Atlanta real estate agent specializing in homes and neighborhoods convenient to Emory University and The CDC. Thanks for visiting my BLOG!
Sally,
This is an excellent summary. In Toronto with the current bidding wars on every good property, it is the side issues that make the deal.
Yesterday, my clients won the bidding war due to:
1) large certified cheque for the deposit,
2) quick 35 day closing,
3) no conditions, we already paid for the home inspection,
4) obviously, we omitted any "outs" from the contract,
5) we took the property "as is",
6) we agreed to move up the price to match the highest offer.
Brian
Sally:
A seller may initially be thrilled that they are getting a "good offer" but the devil can be in the details. The contingency of the buyer having to sell their current home before the deal can be consummated is one of the toughest. Most sellers around here simply will not accept that one.
The buyers' financial qualifications are also key. They need to be solid and checked out before you actually have a deal.
I think sellers these days are just thankful to have something to work with. I did present 2 verbal offers last month by one client - not something I would normally do, but they were 2 hours from hopping on a plane back home to China and had no time to put either in writing. Sometimes you gotta do what you gotta do. Both sellers were extremely open to the idea which surprised me as the rule here is put it in writing.
Sally, I agree with all that you have pointed out; however, for me, one of the biggest seller hangups that I've run into with otherwise great offers has to do with possession. Buyers normally want to get in ASAP and sellers want time to move. Since it usually takes 30-45 days to get to closing (at least here in Michigan), you'd think that is sufficient time. The seller possession time AFTER the closing has been a sticking point in some of my sales. From the buyers perspective possession "at closing" is preferable; however, many sellers, seeing what is happening with deals falling apart right up to closing, want possession time after the closing, to make sure the deal goes through before loading up the moving van.
I certainly can't blame the sellers for that. Last minute blowups that prevent closings can be extremely expensive for sellers who may have already committed to another place and many of whom may have already moved out of the house being sold. I generally advise sellers to list the possession time as "negotiable" in their listing and to plan for a fairly short time of possession after closing. I advise buyers to ask for possession at closing and then to be willing to negotiate a reasonable post-closing possession time with the sellers.
You are so right. Price is not always the thing that seals the deal. Even if my buyer accepts a counter offer based on price, I am particularly careful when I get that contract back and make sure no other changes have been made. If changes have been made (written in or otherwise), then there is no deal until my buyer(s) initial the changes. This is a technique listings agents often use to get to yes on price and assuming since they got to yes, nobody will back out. Well sometimes they do if yes does not emcompass the original terms or renegotiated terms.
This is a very thorough point by point explanation of what goes into making an offer, but price still is the overwhelming factor in an offer. In Manhattan the whole purchase process is very different than what you explained.
Great summary list Sally. Thanks!
Price is what we hear bellowed over and over and yet the deals are sealed in the details.
This is a informative post for buyers who are looking for some good definitions. Price is not always the hurdle and deciding factor, there are details that we have always suggest our sellers to look at.
When presenting an offer that is unusually low, other elements of the deal may in fact be better. If you're off on price but can close quickly and don't need a mortgage, then the seller may (hopefully) consider the offer.
Great list of things that both buyers and sellers need to be aware of when negotiating the sale/purchase of a home.
Sally:
I agree on so many of your points, the one that causes a major stumbling block here in San Diego county is the seller and buyer agreeing on the service providers. IE: Escrow, Title, I know that may not be something that comes up in your neck of the woods but it sure does here.
Many times the agents get their ego's in the way.
I can';t imagine letting the escrow/title company be a stumbling block to closing a sale. That sounds like one of the agents is imposing his/her relationship with title upon everyone else.
Bottom line, the most important part of an offer is...the bottom line, and that includes many variables. This is where experience and skill that a Realtor possesses is put to the test. I would always recommend to a new Realtor that they have someone to help them do the right thing for their client.
Sally,
This is an excellent post on the factors that contribute to an acceptable deal for all parties. The devil is certainly in the details, as there can be items that won't work for either party outside of price. Price is one of the aspects, but not the only one.
I will be looking forward to your next post.
All the best, Michelle
Thanks to all of you for great comments. I posted the article and then went to my morning work out. Wow, you guys were busy in my absence!!!! I will try to catch up with your comments after a few phone calls!
Thanks
"This is an excellent summary. In Toronto with the current bidding wars on every good property, it is the side issues that make the deal. Yesterday, my clients won the bidding war due to:
1) large certified cheque for the deposit,
2) quick 35 day closing,
3) no conditions, we already paid for the home inspection,
4) obviously, we omitted any "outs" from the contract,
5) we took the property "as is",
6) we agreed to move up the price to match the highest offer."
Brian
Brian: you have the makings of a great post! I think you bring some great information to the negotiation table.
"A seller may initially be thrilled that they are getting a "good offer" but the devil can be in the details. The contingency of the buyer having to sell their current home before the deal can be consummated is one of the toughest. Most sellers around here simply will not accept that one." Claudette Millette - Metrowest Mass Buyer Broker. The buyers' financial qualifications are also key. They need to be solid and checked out before you actually have a deal. ." Claudette Millette - Metrowest Mass Buyer Broker
Claudette: I definitely should have included that in the post. Thanks for adding this wisdom to the discussion.
"I think sellers these days are just thankful to have something to work with. I did present 2 verbal offers last month by one client - not something I would normally do, but they were 2 hours from hopping on a plane back home to China and had no time to put either in writing. Sometimes you gotta do what you gotta do. Both sellers were extremely open to the idea which surprised me as the rule here is put it in writing." Corinne Guest Barrington IL Real Estate - Broker - Buyers Agent - Luxury Homes
Corinne: I had a very similar cricumstance over MLK weekend. Seller was on a return flight from China. We worked it out. Technology is amazing,
Sally English
"Sally, I agree with all that you have pointed out; however, for me, one of the biggest seller hangups that I've run into with otherwise great offers has to do with possession. Buyers normally want to get in ASAP and sellers want time to move. Since it usually takes 30-45 days to get to closing (at least here in Michigan), you'd think that is sufficient time. The seller possession time AFTER the closing has been a sticking point in some of my sales. From the buyers perspective possession "at closing" is preferable; however, many sellers, seeing what is happening with deals falling apart right up to closing, want possession time after the closing, to make sure the deal goes through before loading up the moving van.
I certainly can't blame the sellers for that. Last minute blowups that prevent closings can be extremely expensive for sellers who may have already committed to another place and many of whom may have already moved out of the house being sold. I generally advise sellers to list the possession time as "negotiable" in their listing and to plan for a fairly short time of possession after closing. I advise buyers to ask for possession at closing and then to be willing to negotiate a reasonable post-closing possession time with the sellers" Norm Werner Real Estate One
Norm: I have been dealing with so many vacant homes and short sales/foreclosures lately I that possession was not at the top of my list. Thanks for bringing it to the discussion. It can be a sticky topic and should be dealt with up front.
Sally English
I like this. It's well written and easy for a seller as well as a BUYER to read and understand. Everybody should understand that there is so much more than the agreed upon price that falls into play, yet many do not.
Great post! I always felt that price is such a small part compared to the overall terms of the contract. A full price contract with open ended terms is worthless.
Sale of the buyer's home and how long a train of dominos nice to factor in the discussion, to warn about the possible derailment that could happen chain reaction style. But you the trained professional monitor all the details and make sure the derailment does not happen right? Back up buyers in case it does is how you roll...not leaning back with your feet on the desk counting your chickens before they hatch. That's not you.
I have to agree wit your post. I have found that agressive closing dates and lack of contingencies can help a sale move quicker and make amore attractive offer.
Great post. Clarifying our fundamentals is always good practice. Thanks! I enjoyed reading it.
www.GarrigusRealEstate.com
"Sally, great list. Knowing what they are doing with their current house is a very good question." Gary Woltal - Associate Broker REALTOR® Dallas Ft. Worth
Gary: Absolutely, we need to know what the contingencies are for the buyers loan to close escrow. I missed that one...thanks for adding it to the discussion
"I agree on so many of your points, the one that causes a major stumbling block here in San Diego county is the seller and buyer agreeing on the service providers. IE: Escrow, Title, I know that may not be something that comes up in your neck of the woods but it sure does here." Lorraine or Loretta Kratz-Certified Negotiation Experts,
Lorraine: Oh yea, its a big deal in Atlanta also. Strike up another one to add to the list above!
"This is a very thorough point by point explanation of what goes into making an offer, but price still is the overwhelming factor in an offer. In Manhattan the whole purchase process is very different than what you explained." Morgan Evans-New York City Real Estate Expertin
Morgan, I defer to your knowledge of NYC brokerage. I did live in NYC for two years in the early 80s. I was a sales engineer for Westinghouse Electric and worked in the old Pan Am building. My husband was attending Columbia Business School and we lived in the Morningside Area.
I think you missed the main point of the article, price is important:
See part two of this article: Negotiating the Purchase Offer: Price Does Matter
But it is also improtant to know the sale will close and what is invloved in getting to the closing table.
Thanks,
Sally
"Bottom line, the most important part of an offer is...the bottom line, and that includes many variables. This is where experience and skill that a Realtor possesses is put to the test. I would always recommend to a new Realtor that they have someone to help them do the right thing for their client. " Joe Pryor.com Realtor Oklahoma Investment Properties
Joe: So right about mentoring less experienced Realtors. I read every contract written or received by my team BEFORE our clients sign on the dotted line. Too many ways to screw up in the current environment. Just look at all the additional points of discussion brought up by colleagues in this discussion. We can't plan for every contingency, but we can knock out stuff we have seen before.
Sally English
Sally - this is a great post! You should consider breaking it up and doing a SERIES! Woops I see you do have a Part 2! Congrats on the feature! :-)
A full price contract with open ended terms is worthless.
Succinct and to the point. Thanks Joseph
I have to agree wit your post. I have found that agressive closing dates and lack of contingencies can help a sale move quicker and make amore attractive offer. Alison Moss - Cincinnati Real Estate
Alison: That has always been my approach when buying investment real estate. I want to make the transaction as painless as possible for the seller. Many sellers will accept a lower price in exchange for the added security of knowing the deal is going to close...and quickly.
Sally English
Sally, great information in a very good format. I agree with Alison that there are some aspects that make up for the price.
Sally, what an informative post!
I am a new agent, and just learned the value of a net sheet, and the bottom line.
Thank you so much for sharing!
Anna
Sally - This is a great post. There are some parts that are difficult in our neck of the woods these days. A 45 day close is a very tight schedule to meet, and our earnest money deposits by custom are only $1,000. Instead, our liquidated damages is part of our contract and is 3% of the purchase price. I really like the post though. it does a great job explaining that there's more to an offer than just price...
As a listing agent, I am just happy to get an offer! Thanks for all the great points.
kp
Great post! The first thing sellers ask is, whats the price offered. It takes a bit to get them to realize that's not the whole equation.
These are really important questions and topics that sellers need to explore with their agents. People are sometimes so focused on the money that they forget about everything else.
Alot of this is also driven by state law. but I agree, you have to look at all parts of the offer. Personally I save the champagne unitl after closing.
Great information! I love when I receive a full price offer but then the buyers want a huge amount of closing costs, a long inspection period, a long closing period, and only $500 earnest money. The agents' response is always, "It's a full price deal."
"Ummmm, no it's not!!"
Sally - This is a great post. There are some parts that are difficult in our neck of the woods these days. A 45 day close is a very tight schedule to meet, and our earnest money deposits by custom are only $1,000. Instead, our liquidated damages is part of our contract and is 3% of the purchase price. I really like the post though. it does a great job explaining that there's more to an offer than just price...
Thanks Christianne. Too right, real estate procedures differ from location to location. It always pays to deal with a local Realtor. IMO that is one reason Redfin and others will find it challenging to tackle the US with a single formula. They are cost efficient models but local knowledge is critical to the deal.
As a listing agent, I am just happy to get an offer! Thanks for all the great points.
kp
Me too!
Alot of this is also driven by state law. but I agree, you have to look at all parts of the offer. Personally I save the champagne unitl after closing.
I'm on a beer budget these days, but yea, after the closing is wise.
Sally
Great information! I love when I receive a full price offer but then the buyers want a huge amount of closing costs, a long inspection period, a long closing period, and only $500 earnest money. The agents' response is always, "It's a full price deal."
"Ummmm, no it's not!!"
Thanks Donna. Too right. "Full price" offers are a rare bird these days.
Sally
In other words, terms. It is never just price. One thing we do around here when a seller concession is involved is always operate off the seller's price AFTER the concession. It keeps things simpler, and they only care what they net anyway, not how much the buyer borrows.
Nice post and I think that you covered both sides fairly accurately, thanks.
Great summary! And very true - I have had buyers "win" on an offer because they were willing to be flexible with letting seller set closing date, or willing to keep & care for the koi in the fishpond til the sellers could construct a new pond at their next house (that's my favorite off the wall one) or just because the seller met them at a showing and liked them/felt commonalities with them and wanted them to have the house.
Phillip, James and Nancy:
Thanks for adding to the conversation. Great comments and suggestions.
Sally
Excellent Post but in our market I have found verbal offers and checking in over time have been very effective since many asking prices are well above value. Sometimes it happens right away and sometimes I check in with their brokers for six months to get there so they and the owners know someone is ready. There is a lot more psychology to this but I stick to that for now. It was a part of about $5m in business year and is going well for a $2.5-$3m home right now so I would suggest giving it a try.
I just reblogged this. I agree. Sometimes it is a simple as one of the offers is a known neighbor who the Seller knows or the timing is perfect or the list goes on and on. It is not always about money.
The price is just the beginning of the contract and the process. After the buyer inspects the home thoroughly that will determine if it will stay in contract or have a lot of repairs noted or just be accepted as it is. Then you have to make sure the buyers are moving swiftly in financing so that the home is not off the market too long in case they can't get the loan. It is truly a process that has to be managed at every step. If all goes well then you are as happy as your sellers when it does close.
Sally great points; price is surely not the only consideration. I have had sellers accept a lower offer because other factors were very important.
Excellent Post but in our market I have found verbal offers and checking in over time have been very effective since many asking prices are well above value. Sometimes it happens right away and sometimes I check in with their brokers for six months to get there so they and the owners know someone is ready. There is a lot more psychology to this but I stick to that for now. It was a part of about $5m in business year and is going well for a $2.5-$3m home right now so I would suggest giving it a try.
Jon: I am glad that is working for you. However, I would advise my sellers not to respond to your probes. Furthermore, any broker who releases information about pricing without their seller's consent is violating a whole bunch of ethical and legal boundaries. I just don't go there.
Sally English
just reblogged this. I agree. Sometimes it is a simple as one of the offers is a known neighbor who the Seller knows or the timing is perfect or the list goes on and on. It is not always about money.
Thanks Cheryl. Reblogging is a super compliment.
Sally
The price is just the beginning of the contract and the process. After the buyer inspects the home thoroughly that will determine if it will stay in contract or have a lot of repairs noted or just be accepted as it is. Then you have to make sure the buyers are moving swiftly in financing so that the home is not off the market too long in case they can't get the loan. It is truly a process that has to be managed at every step. If all goes well then you are as happy as your sellers when it does close.
Barbie: Another excellent point I by passed. Inspections are a big deal. Thanks for bringing it up for discussion. Financing is also a biggie. Surprised no one mentioned pre qualification letters.
Sally
Sally great points; price is surely not the only consideration. I have had sellers accept a lower offer because other factors were very important.
Thanks Jennifer. You must have coached your sellers well. Far better to lower the risk in the transaction if moving time is critical. Especially in this market.
Sally
Sally,
great illustration how price and terms are two totally different things.
Hi Sally -- Great advice. It's more involved than meets the eye, as your post so aptly states.
Sally, wonderful post. I for one will almost always recommend a lower price(must be reasonable) that is clean and quick, over one that is more money but long and drawn out.
Sally, In the wonderful Michigan market of nearly all short sales, qualifiers become even more important. Not only must the buyer be able to complete the sale but they also must be committed to hanging on for the duration of the often lengthy process. So hard to determine that up front but important to keep the potential buyers informed as to which place they are in and who has dropped out of the running. It is hard to keep eager buyers motivated when 90-120 days will likely elapse between offer and bank acceptance. All the more reason to insist that every buyer is thoroughly qualified - if not patient.
Great post, Sally! Very well put togeher.
Yes, verbal offers are useless & sometimes an underhanded way to see how a possibly lesser-experienced listing agent may react or tip their hand in an initial conversation. I don't entertain anything verbal initially for this and other reasons.
I always want detailed terms and documentation up front for my seller clients. Then...we can commence "The Conversation". Most times, I ask to speak with buyers' mortgage professionals for verification as well.
After the initial "dance", I don't have a problem fine tuning verbally rather than burning out the fax machine and making 100 revised revisions to feed the shredder!
Thanks again for the post.
All the best!
Brian Morgenweck, Broker/Owner
Power Realty Group, Hackensack, NJ
Sally, I'm going to reblog this too. It's great information for my sellers to receive BEFORE we get an offer on their property and they've already (prematurely) cracked open the champagne and started the celebrating. Gotta slow down the emotional roller coaster as much as we can, right? -- Tanya in Montreal
Sally,
Very good.
Once an acceptable price has been reached it's the perception and intangibles an offer conveys that makes one offer better than another! Unfortunately this is a dieing art, how can a selling agent who's closest contact with the listing agent and seller is personally loading the fax machine know the personal factors of the principles?
Bill
Good post and I will reblogg it. The highest offer is not always the best.
Thank you for such a wonderful post. Possession is not a huge issue here either because so many are bank owned or short sale.
I also plan to re-blog your post. Or link to it in a blog of mine. You did a great job!
Michael, Chris and Tom:
Thanks for the encouragement. Lets hope we have lots of offers to present in 2010!
Sally
"Yes, verbal offers are useless & sometimes an underhanded way to see how a possibly lesser-experienced listing agent may react or tip their hand in an initial conversation. I don't entertain anything verbal initially for this and other reasons.
I always want detailed terms and documentation up front for my seller clients. Then...we can commence "The Conversation". Most times, I ask to speak with buyers' mortgage professionals for verification as well.
After the initial "dance", I don't have a problem fine tuning verbally rather than burning out the fax machine and making 100 revised revisions to feed the shredder!
Thanks again for the post." Brian Morgenweck, Broker/Owner Power Realty Group, Hackensack, NJ
Brian: I too do some fine tuning verbally after terms have been worked out. Sally
Tanya, Gene and Joetta: Thanks for the reblog
Bill: We are becoming too much of a faceless business.
Bernadine: We could all use a boost in the job market to take down some of these foreclosures.
Best to all,
Sally
Sally,
Thanks for your post. I think you are so right. It has to be a combination of many things to get offers accepted today. Not just price.
Wendy
Yes price is the most important for the most part. Terms are key as well. You have to look at a contract and see how it is laid out . Good post . thanks,
Patricia/Seacoast NH
Sally,
All of your points are right on. The first thing a seller wants to hear is "How much are they offering?" As was said earlier, the devil is in the details. That is why it is so important for the listing agent to explain all of these details and how they are either an advantage or potential disadvantage to the seller and the odds of this offer making it all the way to the closing table.
Sally,
A great rundown on what to look for when selling a property. One of the keys is to get a mortgage pre-approval letter from the buyer so that their ability to actually purchase is assured.
I find it important to educate my sellers about the fact that the price is not always the most important factor in deciding, especially between multiple offers.
You've written a post that does a good job showing sellers what else they need to consider.
Great article. It truly is so much more than offered price. Although that is the first question every seller asks, until they all the details such as contingencies, they cannot make an informed decision.
Great post. Sellers must consider all angles when accepting an offer.
Sally,
Thanks for your post. I think you are so right. It has to be a combination of many things to get offers accepted today. Not just price.
Wendy
Wendy, True in any market but especially true today!
Thanks,
Sally
Yes price is the most important for the most part. Terms are key as well. You have to look at a contract and see how it is laid out . Good post . thanks,
Patricia/Seacoast NH
Patricia: Thanks for the shout out. Sally
All of your points are right on. The first thing a seller wants to hear is "How much are they offering?" As was said earlier, the devil is in the details. That is why it is so important for the listing agent to explain all of these details and how they are either an advantage or potential disadvantage to the seller and the odds of this offer making it all the way to the closing table.
Paul, You are correct, it is the first thing they want to know.....but, not all they need to know as you point out. Thanks, Sally
Sally,
A great rundown on what to look for when selling a property. One of the keys is to get a mortgage pre-approval letter from the buyer so that their ability to actually purchase is assured.
Esko. Pre-qualification letters are a huge issue in all markets but absolutely essential today!
Thanks, Sally
I find it important to educate my sellers about the fact that the price is not always the most important factor in deciding, especially between multiple offers.
You've written a post that does a good job showing sellers what else they need to consider.
Christine, We do not get a lot of multiple offer deals in Atlanta. But it would definitely escalate the need to look beyond price wwhen choosing between multiple offers.
Thanks, Sally English
Great article. It truly is so much more than offered price. Although that is the first question every seller asks, until they all the details such as contingencies, they cannot make an informed decision.
Great post. Sellers must consider all angles when accepting an offer.
Thanks "Ya'll" From sunny Atlanta, Sally English
Sally, good review of the process and things to think about. Many people focus on price and mess the other things until it's too late.