This year has seen a dramatic increase in home sales, leading experts to believe that there is hope for America’s housing market on the horizon. Since the housing market was so dismal for so long, many sellers have been afraid to list their homes. Now, most areas are seeing a low inventory of homes for sale – meaning that buyers are fighting over what happens to be available. If you have a home up for sale right now, you may find yourself receiving multiple offers for it.
So, what’s the best way to them all?
This question seems like it has a simple answer – grab the highest offer and sign on the dotted line, right? Not necessarily! Unfortunately, too many sellers make that mistake and wind up wishing they had considered some other aspects first. After all, there are a number of factors to take into consideration when you’re selling your home – and while you always want to get the highest possible price, you also don’t want to blindly take the highest offer. Why not?
Too many times, people will say they are prequalified by a credible lender when that isn’t necessarily true. Many realtors will check before they even show the house, but you need to make sure your realtor has done this before you spend any time with a potential buyer. In fact, the best way to avoid this pitfall is to ask for a letter from the lender stating that the buyer is, in fact, prequalified for the amount they have offered for your home. But don’t stop there! After receiving the letter you also will want to ensure that the lender is credible, and actually exists! (You’d be surprised at how many buyers try and “fudge” this!) Then, do some more homework on the buyer himself. Although you won’t be able to see all of the financial information behind your potential buyer, you can find out how well-qualified the buyer is for your home. Many times, lenders will tell if you the buyer qualified with no problems or he just barely qualified for a loan. Since things can happen from the time the buyer first applied and the time he goes to purchase your home, your safest bet is a well-qualified buyer.
What about VA or FHA loans?
Although there is sometimes a stigma associated with these loans, you shouldn’t rule them out. While these loans will require you as the seller to ensure the home meets all safety requirements, every smart buyer will conduct their own inspection anyway.
Many people also assume that a cash buyer is the best buyer, but that’s also not always the case. It is typically unlikely that the cash buyer will be the highest bidder, because many assume they can get away with offering less because they have the cash in hand. Cash buyers also are usually investors who plan on flipping your home for a profit. So, if someone sees potential in flipping your home, you may want to take the time to make small upgrades to improve the value of your home yourself!
Although it may be hard not to jump at the highest offer right away, by following this advice, you can save yourself the trouble of having a buyer fall through at the last minute and being forced to start the process all over!
This article is brought to you exclusively by RealtyPin.com