As I mentioned in my recent market report, the metro OKC real estate market is very hot right now even after the slight downward trend after the oil company layoffs in late 2015, we are still in a seller’s market. I see this daily in business, where home sellers are receiving multiple offers on their properties and trying to analyze which offer is best for them. And just like in buying a car or other high end item, the highest price is not always the best offer. Here are a few tips on analyzing these offers and choosing the offer that is best for you.
Do the Math
When faced with multiple offers on your home, first you will want to do the math. The highest price is not always how you get the most money for your home. I will help you by deciphering each offer, comparing the closing costs and fees, then explain to you how much you net on each offer.
Look at Financing
Most home buyers require financing. I will help you look at each offer to determine if the buyer is fully qualified to purchase your home. We will want to understand if the offer includes FHA, VA, conventional or some other type of financing. This can affect your costs, since some types of financing requires the home seller to shoulder certain costs, while other types of allow you to negotiate these costs. For example, a VA loan requires the home seller to pay for termite inspections – this is non-negotiable. With a conventional loan this is a negotiable cost. I can guide you through these unseen pitfalls to determine which financing offer is most likely best for you.
Consider the Level of Motivation
The motivation of the buyer can sometimes help you determine how smoothly the transaction will go and how likely the buyer is to make concessions during the inspection phase. While we may not always know the motivation of the buyer, sometimes they will offer up information such as a new job nearby, a desire for a certain school district, or maybe an elderly family member lives nearby that they need to help.
Check the Offer Timeline
Home buyers often have a timeline they are working with. Maybe their lease is up, or they have an offer on their existing home, or a new job starts soon. Whatever their motivation, it is a good idea to look at their proposed time lines in the offer, and ensure that their time lines work with YOUR time lines. For example, they may not want to move in for sixty days while waiting on the sale of their home, while you may need to move out sooner because of a new job. So even though their offer might be at a higher price than a competing offer, the time lines may now work out for you. I can help you analyze these time lines on the sale of your home and help determine which works best for you.