Considering multiple offers may be a difficult undertaking for homeowners. The typical reaction is to focus on solely offer price, but that may cause issues. There are a variety of different terms in an offer that sellers should consider in order to identify which offer to accept. This blog details advice on comparing multiple offers on Farmington Hills real estate.
Advice On Comparing Multiple Offers On Farmington Hills Real Estate
Home Buyer Financing
There is a significant difference between a pre-qualification and a pre-approval, particularly when considering multiple offers. A pre-approval is traditionally given after a loan officer confirms the credit history of a buyer. There is no such verification for pre-qualifications. Pre-approved people are, naturally, better positioned to obtain commitment on a loan. Sellers will risk valuable time when the other party cannot get a loan and must therefore cancel the transaction. Due to this risk, sellers do not usually rely on pre-qualifications.
It is typical for conditions such as an inspection to be included in an offer. Sometimes special contingencies are added by home buyers, such as a home sale clause. More contingencies mean higher uncertainty. Some contingencies are more risky than others and may be effected by the condition of the market.
Earnest money reflect the seriousness of a buyer. It also covers a seller when the buyer backing out from a deal for a reason not related to contingencies. Also, the amount of deposits could reflect financial stability. For the above reasons, the dollar value of deposits should be carefully considered in multiple offer situations.
Sale Price is Relative
Avoid making price the single consideration when comparing multiple offers, especially if a fast closing is a concern. Problems may be expensive and therefore can affect the amount of money a seller will obtain from the sale. Furthermore, a property that returns to the market after a deal falls through will likely sell for less due to loss of time. An experienced real estate professional can help you closely consider all the terms of offers and properly compare them. This article with advice on comparing multiple offers on Farmington Hills real estate was prepared by Tom Gilliam at RE/MAX Classic.