Selling a home in Philadelphia is both easier and more difficult today than it was in the past. It’s easier in that, because to low availability and buyer rivalry, you’ll almost certainly receive many bids. It’s more challenging today since you have to assess all of the options and pick the best one. And the quantity of the offer, or the offered purchase price, is frequently not the most significant factor for accepting an offer – partly because, in today’s market, you’ll almost certainly get your asking price or something close to it. So how do you decide which is the best offer? Read on to discover 5 things to look for when evaluating offers for your Philadelphia house.
1. Size of the Down Payment
You should pay close attention to the down payment offered when evaluating offers for your Philadelphia home. “An offer by itself is just a piece of paper and a handshake,” says one industry insider, “but an offer accompanied by a hefty wad of cash… now you’re talking!”
When a buyer is willing to offer a larger down payment, that means she is a serious buyer, and the offer is one you should consider. “A down payment from 20% up to 50% says it’s the real deal.”
You do have to make sure, though, that the promised money for the greater down payment are in fact accessible, which often means liquid assets. To learn more about this, contact a Philadelphia agent at (215) 385-3055.
2. Number of Contingencies
Contingencies – the things that have to happen before the transaction can be completed and you get paid – are another crucial component of analyzing proposals. Buyers are generally protected by contingencies such as the sale contingency or the inspection contingency. However, an offer with an excessive number of them should raise your suspicions.
Contingencies that put you, the seller, at greater danger should be avoided at all costs. The home sale contingency is the most common of these, and it states that the transaction is contingent on the buyer selling her current home. The issue is that there is no way of knowing whether or not such a sale will take place. If you need assistance analyzing contingencies, call your Allentown
agent at (215) 385-3055
3. Concessions Asked for
Similarly, you should also take into account the concessions the buyer asks for when evaluating offers for your Philadelphia house.
For example, a buyer “A buyer, for example, “may ask you to acquire a home warranty policy, which can cost anywhere from $350 to $800 or more,… or they might even want you to do some substantial house repairs before closing.” When it comes to those repairs, keep in mind that they will effect not only your profit margin on the sale of your house, but also your timeline. If you need to sell your house in Bensalem
as soon as possible, choose an offer where the buyer is willing to take it “as is.””
4. Buyer Pre-Approval
Also, when evaluating offers, keep in mind that an offer from a buyer who has been pre-approved for a mortgage is usually a better offer.
“A potential buyer who has received mortgage pre-approval has already worked with a lender and had his or her finances assessed by a loan officer (income, debt, assets, and credit history). The lender then assesses how much money that buyer can borrow and issues a letter that reveals how much they can borrow to acquire a house.”
A pre-approved buyer is a serious buyer with the financial means to pay what she offers. That’s why many agents encourage their seller clients to evaluate and accept only offers from purchasers who have been pre-approved for a mortgage.
5. Who Pays Closing Costs
A final important consideration in evaluating offers concerns who pays or will pay the closing costs.
Both sellers and buyers have costs to pay at closing, but the bulk of closing costs falls to the buyer. “Buyers must pay a laundry list of expenses, including a credit report, a home appraisal, a title search, and the cost of employing a real estate attorney to draught the sales contract, while sellers pay the real estate agent’s commission.”
As a result, it’s fairly uncommon for purchasers to request that the seller pay some or all of the closing expenses, which can range from 2% to 5% of the purchase price. Sellers frequently agree to this in order to complete the transaction. Still, it’s a significant sum of money, and one that should be carefully considered before accepting the offer.
A Philadelphia Agent Can Help With Evaluating Offers
These are crucial factors to consider while analyzing proposals in order to make the best decision. But there’s one more thing to look for. And he is a seasoned Philadelphia professional. Your agent’s experience and understanding of the local market can be beneficial (and possibly even crucial) in evaluating offers. Contact us immediately at (215) 385-3055
for assistance in analyzing bids for your Philly Homes And Lots