Even though many services have stopped during this uncertain time, the sale of homes has not. I want to ensure that you are getting the best education with the most up-to-date information, so if you are in the process of selling a home I want to help you understand how to accept a bid offer.
Before The Offer
Before the offer comes in, it is crucial to have a conversation with your real estate agent about your priorities in selling the home. This way, you will have a foundation on which to base any decisions that come your way later in the house selling process. If you are selling your home due to a divorce or job relocation, selling a home as quickly as possible will become a priority for you. If you are experiencing financial hardship, you might prefer a buyer who is not requesting you make any repairs to the property even if the price of the home is lower than what you had hoped for.
Conditions
Another important item to review when figuring how to choose which bid to accept are the conditions in each offer. Go through the conditions with a fine-toothed comb. Common conditions will generally include a home inspection, property appraisal and buyer financing. One condition to look out for is if the offer is contingent on the sale of the buyer’s home. There is no way to guarantee when the buyer’s home will sell so this can put you in a tricky situation. If an offer has many conditions, that is also a red flag. The fewer hurdles you must jump through, the better for you.
The First Offer
Many people turn down the first offer in hopes that others will be better. Many sellers tend to think the first offer is usually someone testing the market, when in fact studies show the first offer is often the best offer. This is because the longer your home is on the market the more buyers wonder why your home has been on the market for so long. You should strongly consider the first offer if:
-
The timing is right for you
- You have a limited buyer pool due to a particular element of your home that makes it unique (eg. its particularly high value)
-
You have tight timelines
-
You receive a cash offer (as that involves one less condition, making it a smoother transaction)
-
You have already found your next home and you cannot carry two mortgages at once
It is important to remember that while you may have developed strong emotional attachments to your property, you need to treat the sale of your house like a business deal. That means, keep your emotions at bay, no matter how difficult it may be. At the end of the day, deciding how to choose which bid to accept is a personal decision. These are just a handful of ways that are tried and tested. If you would like more advice on determining which bid to accept, please feel free to reach out to me here. I would love to help you sell your home in a way that makes you feel confident that you had the best possible outcome. Stay safe, healthy and at home!
