When the real estate market is on fire, there are some sellers who are lucky enough to get multiple bids on their property. If you are in this position, you'll find that figuring out which offer is the best could be quite difficult.
Some people may think that price is the only factor that should be considered in choosing the best offer, and choosing the highest one is the best decision. However, there are also smaller factors that can create a difference in winning and losing in a real estate bid.
Mortgage Pre Approval
The one big question you should ask yourself before accepting a buyer's offer is, "Is he/she preapproved for a mortgage?".
There are times when you just wanna jump on board into a deal with a high asking price. However, the entire transaction can fail if your buyer hasn't been approved for a mortgage that big. The easiest way for buyers to stand out over others is by making sure that they have the mortgage pre approval that can cover the home sale. This will not only reduce the chances of the entire sale falling through, this also helps prove whether your buyer is serious in buying the house or not.
Take A Look At The Details
Aside from the amount of money your property is being offered, there are other things that you should put focus to in deciding which deal is the best. Besides, if the bids are close to each other, you're gonna have to look for other basis to determine which deal is the best.
One way to figure this out is by looking at the buyer's earnest money, or the money deposited by the buyers to show their good faith in the real estate transaction. If the buyer put in a higher amount of earnest money, there are little chances that this buyer walks away at the last minute. But if the buyer put in a safe amount of cash, then he/she might drop the deal in the end.
Furthermore, take note of the buyers' terms and conditions such as appliances and fixture requests, and find out if these requests can cost you or earn you money.
Overall, what is needed to be done in choosing the best deal is to compare ALL factors and not just the total asking prices. There are details about the closing dates, list of contingencies that the buyers make, and many more that may differ per transaction. To make the best decision, ensure that all these factors are given enough attention so you do not end up regretting the offer you accepted.
