By Joe L. Fisher
Why isn’t the highest offer always the best offer?
T
he housing market is a whirlwind! Because this is a seller’s market, purchasers will compete in whatever manner they can to become the owners of the listed homes. Every bidder makes the finest offer they can to the potential sellers, which they think is enticing and exceptional. Offering the greatest home price is one of the most perfect and enticing offers for buyers, but is it the best offer? Certainly not! Every seller has distinct objectives, and there are many other factors to consider besides the price when making an offer. Homeowners engage with their brokers to determine the best offer depending on their goal and urgency to sell, as well as the market conditions and more so, tend to establish the motive of their prospective buyers. As said by Jeff Samuels, a regional manager for Northern California at Agency, “The key is to help the seller look at the whole picture for each offer—not just price, but all the terms, and also the perceived eagerness of that buyer.” WWW.THEPOWERISNOW.COM
REASONS THE HIGHEST OFFER MAY NOT BE THE BEST OFFER Non-cash payment- One of the most common reasons for contract failure is non-cash payment financing. If the buyer is unable to obtain a mortgage, they will be forced to terminate the deal. This takes the seller back to square one when it comes to selling their home, which costs them money and time. This implies the vendor will have to start all over again. No seller wants to be in this uncomfortable scenario, thus they prefer all cash payments because they don’t have to wait for mortgage documentation. For customers who require a rapid closing due to school or work relocation, the mortgage payments form may not be an appealing option. Because it provides a guarantee to the seller and because most purchasers cannot afford it, an all-cash offer is favorable. Lack of pre-approval letter- Although it isn’t required, being mortgage pre-approved, might provide a buyer a noticeable advantage in such a competitive market. A pre-approval letter informs the seller that the buyer has met with a lender and has been approved for a l
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