Choosing the Offer to Accept on Your Home

Posted on Tuesday, January 15th, 2013 at 1:33am.

When you receive multiple offers on your home you're faced with a choice. You can, of course, reject all of them, but let's assume that you really do want to sell the house, so you're going to accept one of them.

Some might say "Well, take the highest offer, of course." But as you'll see, the highest offer isn't always the best offer. It isn't even always the offer that puts the most money in your pocket at closing.

Often that offered price is reduced by a request for you to pay part of the buyer's closing costs, give an allowance for new carpeting, or to make some kind of repairs.

As your agent I'll do the math so you can see the net proceeds from each offer.

Then there are contingencies. Standard contingencies include a response date, the buyer receiving appropriate financing, and the seller being able to provide clear title.

Most offers are also contingent upon approval of a home inspection, but some are contingent upon factors outside the purchase.

  • Some are contingent upon closing the sale on the buyer's present home.
  • Some are contingent upon the buyer receiving the proceeds of a settlement.
  • Some are contingent upon approval from a 3rd party.

You never know what kind of an "escape clause" a buyer might include in an offer.

As your agent I'll help you evaluate all the contingencies. When necessary, I'll look into the status of a pending sale or settlement prior to you making a decision.

Unfortunately, some of these events that buyers anticipate never happen - so they do need to be considered carefully.

Finally, there's the closing date. You may want more time to move, or you may want a fast closing so you don't have to make more payments.

The bottom line: The highest offer on your home may not be the best offer.

I'll help you evaluate all the terms so you can choose the best to either accept or counter.

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