Considering more than a single offer may be a difficult process for sellers. The urge is to consider solely price, but that may not be the best approach. There are several different components to an offer that sellers may evaluate in order to identify the best offer. This article details details on evaluating multiple offers on Grand Rapids Michigan homes for sale
Details On Evaluating Multiple Offers On Grand Rapids Michigan Homes For Sale
There is a big difference between a pre-qualification and a pre-approval, especially when evaluating multiple offers. Pre-approvals are typically given once a loan officer checks credit ratings for a buyer. There is no level of verification for pre-qualifications. Pre-approved buyers are, therefore, more likely to get approved for a loan. A buyer who cannot get approved for financing will terminate the contract. The owner must then get another purchaser for the property. Due to this risk, sellers do not usually rely on pre-qualifications.
It is common for conditions such as a mortgage commitment to appear in an offer. Home buyers might also include additional specific conditions, such as a a condition for the sale of a current property. Fewer contingencies lead to a higher likelihood of closing. Some situations are more risky than others and can rely on the activity in the market.
Earnest money is demonstrations of good faith. It also protects a seller from the other person backing out from a deal for an unauthorized reason. Additionally, the amount of escrow money can reflect a buyer’s strength. For the above reasons, higher deposits may make an offer more attractive.
Look Beyond The Price
Sellers should not make price the single consideration when reviewing more than one offer, specifically if closing quickly is a goal. Problems may be expensive and therefore may impact the net earnings. Additionally, a home that reactivates after a deal falls through will likely sell for less due to loss of time. An experienced real estate professional will help you closely consider all the specifics of contracts and accurately compare them. This blog with details on evaluating multiple offers on Grand Rapids Michigan homes for sale was prepared by John Doorn at JH Realty Partners. 616-949-1004