What to Do When You Get a Purchase Offer
In the process of selling your home, you will (hopefully) receive purchase offers. Are you prepared to evaluate offers?
In this article, we look at how to evaluate offers that occur in two different scenarios:
- when you sell your home the traditional way through a realtor
- when you abbreviate the sale process and sell your home fast to an investor.
When you hire a real estate agent, you are securing the services of a sales professional. The realtor is managing the elements of the sale process, with your input and approval.
Your agent educates you on current market conditions. For example, he or she will know if there is a high demand for homes like yours or if there is a glut of similar homes for sale. This information is important when it comes time to evaluate an offer. You may choose to consider a low offer because it’s a competitive market or you may hold out for a higher offer if the market is lean on similar homes.
This is the type of background information your realtor will apprise you of that will help you as you consider an offer.
Offer Details to Look at When You Sell Your House
Read through the whole offer and look at it carefully with your realtor.
The Pre-Approval Letter
If a buyer cannot come up with the funds to purchase your home, there will be no sale. So, the first thing to look at is whether or not the buyer has provided confirmation of ability to purchase. Most buyers must finance a home purchase, so you want to see a bank pre-approval letter attached to the offer.
Are There Contingencies?
Is the buyer’s offer contingent on the sale of their own home? This is a common scenario. If so, in what stage is the buyer in their own sale process? Is their house also on the market? How close are they to a signed contract?
Is the offer contingent on the home passing inspections? If so, which inspections? A buyer can stipulate multiple inspections, including home, structural, septic, well water, chimney, pest, and radon.
Requests for Credits and Allowances
Offers often come with deals—i.e., you pay half of the closing costs—or with a request for credits if the condition of something in the house is not optimum. This could be carpet that is worn or a roof that is getting old. The buyer knows that the carpet or roof will need to be replaced soon, so they request a credit to compensate for the impending expense.
Offer Numbers and Dates
How close is the buyer’s offer to your asking price? How much earnest money is the buyer willing to put down?
Look at all the dates in the offer and make sure they work for you before you accept it.
If you love the offer, you can accept it. If it’s almost there but not quite, make a counteroffer. Your realtor will craft it. If nothing about the offer is acceptable, decline it and wait for the next one. Or sell your property to a home buying business.
If you decide to bail out of the traditional route to a home sale, you can sell your house to a home-buying company.
Sell My House Houston Pros is one such house buying company in Houston, TX. We buy properties in Houston and across the state.
Like many other investors, we buy properties as-is. This results in a quick and easy sale for the homeowner. Sell My House Houston Pros is a reputable company (rated A+ with the Better Business Bureau) with longevity in the industry (ten years). Our offers are solid and fair.
Questions to Ask When Evaluating a Home Buying Company’s Offer
Whether you’re considering an offer from Sell My House Houston Pros or any other investor, ask yourself these important questions:
- Will accepting this offer enable me to sell my house fast?
- By selling my home quickly, what headaches will I avoid?
- Does this offer free me from the need to make potentially expensive repairs?
- What costs does this offer enable me to avoid? (Realtor fees, inspections, etc.)
- Does selling my property to an investor alleviate a stressful situation?
Getting an offer on your home can be exciting and overwhelming both. A realtor can help you decipher an offer, but when you sell your property to an investor, you’re usually on your own in evaluating the offer. However, when you consider our suggested questions and factors to consider, you should be able to successfully evaluate an offer whether it comes through your realtor or from a home-buying company.