My blog focuses on Home/Living and Home/Property Discussions. Your primary residence is one of the biggest financial transactions you will ever be involved in. When you go to sell, it’s critical to understand if you’re getting a fair offer. The following contributed post is entitled, How To Tell If You’re Getting A Good Offer On Your Home.
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Figuring out whether someone has provided you with a decent offer on your home is always challenging. How do you know whether you should accept?
That’s the question we look at in this article. It explores if you’re getting a decent rate and what you might want to ask for if you’re being short-changed.
Here’s everything you need to know:
Compare Recent Sales In Your Neighborhood
First, you’ll want to compare the price you’re being offered to recent sales in your neighborhood. The closer the offer is to these, the more likely it is a fair one.
Just be careful, though. While the sale price might be similar, your property could offer more than others, such as additional land or extensions. It may also be different in distinct ways from similar homes in the neighborhood, even if it has the same number of bedrooms. For example, those properties might have sold at a discount due to structural or zoning issues.
Evaluate The Offer Versus The List Price
It’s also a good idea to look at the offer compared to the list price. In seller’s markets, you usually see offers at or above the list price, while in buyer’s markets, it is below.
Usually, buyer’s markets occur during periods of recession or economic contraction. When this happens, it is harder for banks to justify their lending, so they don’t, reducing the amount people can afford to pay for their properties. As such, you’ll want to be aware of this when deciding whether to accept.
Get An Independent Estimate
You could also try BrothersBuyHomes.com to see what they offer. These are cash offers, so they will likely be lower, but they can also be helpful for those who need to move out of their properties quickly.
These estimates can give you a floor for what regular buyers should be offering. If they go below this, then it is a sign that they’re not being serious.
Factor In Repair Costs
You should also factor in things like repair costs. For example, you may get a buyer who puts in an offer but wants you to deal with problems in the home, like damaged flooring or dampness. You should consider these costs when processing their offer. In reality, you may not have the money to fix these issues, and it may just be better to go to a cash buyer for a quick resolution and let them deal with the problem.
Check For Earnest Money Deposit
You should also check to see if the buyer is serious by asking them for a deposit. This secures the property for them while you proceed with any work on it. It’s not 100% foolproof because they can still back out, but it is often a good sign that they are seriously interested and that you should begin work.
Check The Closing Timetable
Finally, check the closing timeline. Offers with faster closing times are usually better than those with slower ones. You want something that aligns with your needs, so the sooner the buyer is willing to close, the better.
