Which Terms Are Usually Most Important To Home Sellers When Receiving Multiple Offers?


Which Terms Are Usually Most Important To Home Sellers When Receiving Multiple Offers?
By Scott Rogers • July 2, 2020
It's all about money, right? Well - not always. If you are making an offer on a house and you will be competing with other buyers who are also making offers, there is more to think about than just the price you are offering to pay. Some of these terms will be outside of your control, but keep in mind that these contract terms are ones that a seller will likely be comparing when they have multiple offers... PRICE - Certainly, if some offers are higher than others on price, they are more likely to be accepted by the seller. This can be accomplished by making a strong initial offer -- or by making an offer with an escalation that would increase your offer if other competing offers are higher than your initial offer. CLOSING COSTS - Don't ask for the seller to pay for them if you can avoid it. A $250K offer asking the seller to pay $5K is not equivalent to a $245K offer without a closing cost credit - even though they have the same net to the seller. The $250K offer requires the house to appraise for $250K, whereas the $245K offer only requires it to appraise for $245K. DOWN PAYMENT - The larger your down payment is, the more likely the seller is to consider your offer if comparing it to other offers with buyers making a smaller down payment. A larger down payment shows that you are potentially more financially capable or stable than other buyers who need to finance a greater portion of the purchase price. DEPOSIT - The amount of your deposit ($500, $1000, $2000, $5000) doesn't make a huge difference to the seller (it usually goes back to the buyer if a contract contingency doesn't work out) but a larger deposit shows greater financial capability. LENDER LETTER - This one should be obvious, but make sure to include a letter from your lender showing you are qualified to purchase the home at the price you are offering to pay. PERSONAL PROPERTY - If the seller only wants to include the kitchen appliances with the house, don't potentially miss out on buying the house because you're asking for the clothes washer, clothes dryer, lawn mower, porch swing and pet hamster. ;-) CLOSING DATE - Take a moment and ask the seller what closing date would be most convenient for them, and then work with that if you can. In the absent of that knowledge, offer a speedy closing date but verbally confirm that you can be flexible on timing. HOME INSPECTION - If you are comfortable buying without a home inspection, don't add the contingency. If you do decide to conduct a home inspection (most buyers do) then consider taking the "I did the inspection and I'm walking away from the deal without even asking for any repairs" off the table. This is one of the standard clauses in the home inspection contingency, and if you are willing to remove that clause -- basically showing a willingness to make a good faith effort to negotiate any inspection findings -- it will be noticed and appreciated by most sellers. Also, if you can go ahead and get a home inspection scheduled within 10 days, then offer a shorter inspection contingency timeframe (such as 12 day) instead of the 18 to 21 days we typically see in offers these days based on limited availability of inspectors. FRIENDLY LETTER - Consider writing a cover letter to introduce yourself to the seller and explain who you are and why you are excited to buy their particular home. If there are multiple offers with similar terms but only one buyer took the time to provide some personal context, that could go a long way towards helping the sellers gravitate towards their offer. These items above are just a few of the terms that a seller will likely be comparing when they receive multiple offers on their home. Price is certainly one of the most important factors, but oftentimes the prices of multiple offers are relatively similar -- and the seller will be looking for other ways that an individual offer stands out from the other competing offers. Best of luck, home buyers, in this fast and furious seller's market! Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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