You recently listed your home on the real estate market, and now, you’ve received your first offer. However, you only have a short period of time to review the proposal and accept, reject or counter it. Determining how to handle an offer on your home can be challenging. Fortunately, we’re happy to help you fully evaluate an offer so you can make an informed decision. There are numerous factors to consider as you review an offer on your house, including:
1. Price In some cases, homebuyers may submit a “lowball” offer in the hopes of getting a seller to jump at a quick sale. If a home seller accepts this offer, a homebuyer is able to purchase a terrific home at a bargain price. Conversely, if a home seller rejects or counters the offer, a homebuyer may have an opportunity to reconsider his or her options. As a home seller, you should consider how much you are willing to accept for your residence before you add it to the real estate market. By doing so, you can list your home for a fair price and act quickly and effectively as you receive offers. Also, flexibility is paramount for home sellers. And even though you may list your home for a particular price, you may want to consider accepting an offer below your initial asking price if you’re looking for a quick sale.
2. Sale of a Buyer’s Home Although a homebuyer may submit an offer that is at or above your initial asking price, the proposal may have strings attached that could slow down the home selling process. For instance, a homebuyer could make an offer that is contingent upon him or her selling a residence within a set period of time. But if this homebuyer is unable to sell his or her house, your home sale could fall through, which could cost you both time and money. In this scenario, consider your options carefully. If you believe you can receive other offers from homebuyers who don’t require this contingency, you may be better off rejecting or countering the proposal.
3. Your Timeline If you’ve already secured a new home and need to sell your current residence as quickly as possible, you may want to consider accepting an offer even if it is below your initial asking price. On the other hand, if you are able to afford two mortgages for an extended period of time, you may be better equipped to wait out a slow real estate market. When it comes to determining whether to accept an offer on your residence, consulting with your real estate agent usually is a great idea. This professional can offer expert resources you might struggle to find elsewhere and empower you with the insights you need to make the best decision possible. Consider the aforementioned factors as you evaluate an offer on your home, and you should be able to accept, reject or counter a proposal with confidence.