Getting multiple offers on your home can be exciting, and there’s a good chance you’ll get more than one offer if you list your house in today’s market. There are more factors to consider with multiple offers than the money being offered. It is essential to pay attention to all parts of each offer. Things to be aware of include contingencies, the ability to pay close, and how much money the buyer puts down.
Contingencies
Real estate contingencies protect the buyer’s interests in an offer to purchase contract. They are “walk-away” clauses that allow buyers to back out of the deal and, in some cases, get their earnest money back if certain conditions aren’t met.
Contingency clauses can include:
- Inspection
- Mortgage
- Appraisal
- Home Sale
Be sure to discuss contingencies with your REALTOR® and fully understand the implications of each one before accepting an offer. An offer well over market value can quickly fall apart if mortgage and appraisal contingencies are in place.
Financing or Cash
An all-cash offer on your home might seem like a no-brainer, but be sure to weigh every option.
Cash buyers are typically real estate investors, house flippers, and iBuyers. They are not planning to live in your home and are most likely looking to turn around and sell it for more than they paid you. Cash buyers may offer you less money, but they offer less hassle as well.
Most of the time, a buyer will need a mortgage. Only consider buyers who can prove that they have been pre-approved for the home loan if that is the case. An offer from a pre-approved buyer is more substantial than an offer from a buyer who hasn’t arranged financing, and could come in higher than someone paying cash.
Earnest Money
Earnest money shows that a buyer is eager to purchase the home. In situations where buyers back out or don’t follow negotiated guidelines, the seller can keep the earnest money. The more earnest money a buyer gives, the more serious they are due to the potential that they might not be able to recoup it.
Sellers should carefully consider each offer and weigh the pros and cons. An offer to purchase might be well over the listing price but fraught with contingencies. A cash offer might come in lower but with few contingencies and an easier closing process. The best option is to have a qualified REALTOR® by your side and wait for the offer that works best for you.
The key is organization and communication. Give me a call at (830) 305-5248 or email me at krista@bloomrealtytx.com, and I will be happy to walk you through the buying and selling process.
