In a strong real estate market, sellers can expect to get multiple offers on their home. It is natural to want to accept the highest offer, but is it always the best decision? Simply put, the answer is no. When selling your home, the highest offer is not always the best offer. A seller needs to look at the whole offer to see what the buyer is offering. The goal is to not only get the best price possible, which is what every seller wants, but also to accept the offer that has the best chance of closing successfully.
There are many variables and terms within a contract that should be taken into consideration in order to figure out what the “best” offer is. The highest amount is very significant and appealing in terms of the bottom line, but some buyers may have a sales contract riddled with opportunities for them to pull out of the deal. The seller wants to look for an offer with fewer outs for the buyer in order to ensure a successful sale of their home. You, as the seller, do not want a contract loaded with “contingencies.” When a home sale contract has contingencies in place, the transaction is dependent (or contingent) upon certain factors that could make or break the deal.
There are other things that also come into play. If it is important to you to close quickly, then a cash offer or a fully preapproved buyer would be most beneficial. If you need time to close, then a buyer that can offer you a lease back could play a very important role. Some buyers may be in a position to waive an inspection contingency, especially attractive if you have an older home or know that there may be some repairs needed. Others may be able to omit an appraisal contingency, which is appealing if you know the offer price is above the actual value of the home you’re selling.
In conclusion, if you receive multiple offers on your home, don’t obsess solely on the price. Make sure to carefully review the entire offer, and with the help of your REALTOR®, you should be able to pick the best one that will get you all the way to closing day.