5 Tips To Remember Before Accepting Offers On Homes

Picking The Best Offers For Your Home

Now that your home is up on the market, thanks to your efforts and to the hard work of the real estate agent that you hired, the next step is to wait for an offer from a would-be buyer. Be aware that during such purchases, there are no exact criteria regarding real estate contracts; terms can differ depending on the locality or state. The items on the contract offered to you will also largely depend on the lawyer or real estate agent who was hired by the buyer. There are several ways to get more offers on your home, but there are also a few things that you must avoid. Through this guide, you will discover helpful tips and learn about what you should or shouldn't do.

1Be Wary Of Bad Offers

Negotiations can quickly go awry when an offer has not been given adequate consideration. Instead of you and your buyer thinking of ways that will benefit both of you, you may end up focusing too much on issues that are not yet relevant to the situation or the stage of the negotiation because of a poorly-worded and weak contract. Things can also worsen when the buyer or seller begins to exhibit hurt feelings or frustrations. This is why it's essential to have a good contract that is based on available facts. Remember, facts benefit any negotiation, while emotions can hinder resolution and make a situation tenser.

2Learn To Recognize Good Offers

A good offer possesses certain characteristics that will give you a clue about the intention of the buyer. For one, a fair buyer will compare his offer to the recently sold properties that more or less have the same features as your house. He will also see to it that he is within the price range, which depends on the area where the property for sale is located, and he will utilize the condition, location, size, and age of the property when making a fact-based offer.

An ideal buyer must also be pre-approved for a mortgage, which implies that he is in a stable financial position to purchase a property. Also, it is impossible for you or the buyer to know if the house that you're selling has problems, especially if no prior inspections were done. Thus, the buyer must not ask money for corrective work or renovations before thorough inspections are conducted.

3Accept An Offer Properly

In case you are satisfied with the offer that the buyer has made, the next thing that you need to do is to sign the appropriate contract. After signing, the contract is then approved or accepted. However, signing the offer does not obligate you to hand over your home right away. Although the contract may have already been ratified, there are still contingencies or conditional clauses that will still have a big impact on things later on.

4Know What Contingencies Are

It is common for buyers to have contingencies or certain clauses in the contracts that they offer. In a way, these are like built-in escape routes so that a buyer won't be obligated to purchase your house in case something crops up later on. There are many contingencies, but two of the most common are linked to financing and inspections of the property.

It is but natural for any buyer to want to know what the exact condition of your home is, before buying. A buyer may withdraw his offer once issues are discovered, like termite damage and other problems. As for financing, a contingency focuses on providing an owner with a way out in case he becomes incapable of getting a mortgage.

5Learn When To Accept Contingencies

A buyer will possess more ways to back out of a deal if there are more contingencies stated in the offer. In more ways than one, contingencies provide security for the buyer; however, this leaves many uncertain areas for you, the seller. Nevertheless, allowing a buyer to have built-in contingencies in the contract gives his confidence a boost.

As he proceeds to have your home thoroughly inspected, his mind remains at ease because, in a way, he knows that you won't just go ahead and sell the property to someone else without his knowledge. You'll know that your buyer is very interested and serious in buying your home if he earnestly makes a deposit, which proves that he's going to purchase the property and if he also shoulders the cost of the inspections. These are great indications that you won't have to worry about the contingencies.

Things are more stable and easier once you sign the contract, and after all house inspections are done. But before accepting any deal, carefully examine it and check if it's the best that you can have; make sure that you're not just giving in to the demands or wishes of your potential buyer. In case the offer price is not comparable or satisfactory, you have the right to make a counteroffer.

About Author

John Quintana

John Quintana is a proud Cuban, a lifelong resident of Miami, Florida, where he lives surrounded by a loving family. When he's not writing, he spends his time either fishing or in the kitchen.