Here are 10 things you must consider before accepting a buyer’s offer in this market.

1. QUALIFIED BUYER

This is first, for a reason. You’ll only have a deal with a qualified buyer. How do you know if the buyer is qualified to purchase your property? They must be ready, willing, and able and they need to be able to prove it. This is where it’s valuable to have a lender involved in the earliest stages of your real estate transaction. I cannot stress enough the importance of receiving their offer along with a pre-approval letter from their lender.  Furthermore, sellers will experience varying degrees of success between pre-approved, pre-approved with conditions, and pre-qualified buyers.

2. TIME ON MARKET

How long has your property been on the market?  Why and what would happen if it stayed on the market again for an equal amount of time or longer?

3. MARKET CONDITIONS

Given the market conditions, how attractive is the offer compared to other properties that can be bought?

4. PERSONAL GOALS

How urgently do you need – or want – to sell? All of these considerations have real world implications for you, the seller. Does their offer allow you to meet your original set of goals and timetable?  If not, can you negotiate harder on your next home (if you have one)?

5. NEGOTIABLE FEATURES

Where else are you able to compromise in order to achieve your personal goals?  Price, terms, dates, team members, or maybe you can throw in personal property like a timeshare week, the chandelier, a car, or the above ground pool to sweeten the deal.

6. RISK OF LOSING THE OFFER

When you counter an offer, you are effectively rejecting the buyer’s original offer.  Are you willing to risk the buyer “walking” away from the deal?  Is it what your asking for in your counter-offer worth it? And, don’t forget, any offer is revocable prior to acceptance so when time is of the essence, trying to be a tough negotiator may not serve your interests.

7. MAKE A LIST

Make a list of the strengths and weaknesses of the offer.  When you see the strengths and weaknesses all written down, see if the strengths override the weaknesses.

8. NON-MONETARY WINS

There is more to life than money, sometimes. Family, faith, fun, friends, future, freedom, and fitness can sometimes come before finances. Considering the terms and conditions of the offer, is this offer in your best interest both emotionally and financially?

9. TODAY’S VALUE VS. TOMORROW’S VALUE

Did you figure out that your equity is no longer growing? Once you put a price on your property, all future appreciation stops. You’re admitting your property is worth X amount today and tomorrow’s value ceases to be your main object. Once you’ve decided to sell, you should be very motivated to make the transaction go swiftly. If you are going to change your price, it’s much easier to lower it than raise it. These are just a couple of the reasons that it might not serve your interests to have your property sitting on the market for a long time. 

10. OPPORTUNITY COST

How much is your net equity (take home check or closing proceeds)?  How much would that earn you monthly if it was invested in a safe place, earning an estimated 6% return?  Add the interest that you pay every month on your loan plus taxes, insurance, maintenance, and depreciation.  That is your real monthly cost of not selling.

READY TO SELECT A REAL ESTATE AGENT?

Our agents are extensively trained to identify and point out the advantages and disadvantages of each offer.  Get us involved early so we can match an offer to your specific goals.  Click here for your personal, “no obligation” appointment.

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