Comparing multiple offers can be a complex process for sellers. The tendency is to focus only on price, but that may not be in the best interest of a seller. There are a variety of different components to an offer that sellers should contemplate in order to identify the best offer. This blog contains tips on evaluating multiple offers on NH properties.
Tips On Evaluating Multiple Offers On NH Properties
It is typical for conditions such as an inspection and mortgage approval to appear in an offer. Sometimes special terms are added by buyers. More contingencies mean more risk of the transaction falling through. Furthermore, some contingencies are more risky than others and may be influenced by the status of the real estate market.
There is a dramatic difference between a pre-qualification and a pre-approval, particularly when comparing multiple offers. A pre-approval is typically issued after a loan officer checks the credit for a buyer. A pre-qualification includes no such verification. Pre-approved buyers are, as a result, more likely to get approved for a mortgage. Sellers will waste valuable time from buyers who cannot get financing and back out of a purchase. The type of loan should also be analyzed since some mortgage products have strict guidelines on the borrower and property, or may take longer to process.
Deposits demonstrate the good faith of a buyer. It also protects a seller from a buyer backing out from a purchase for a reason unrelated to contingencies. Lastly, the dollar value of escrow money can indicate financial position. The amount of deposits must be carefully considered in comparing multiple offers for these reasons.
Price is Relative
Sellers should avoid making price the primary consideration when comparing multiple offers, especially if closing promptly is a goal. Delays can be costly and therefore affect the net earnings from the same of a home. Furthermore, a home that gets relisted after a deal falls through will likely sell for less . A knowledgeable real estate agent can help you closely consider all the specifics of contracts and properly compare them. This blog with tips on evaluating multiple offers on NH properties was prepared by Donna DuFour at Accurate Title.