After hiring a real estate agent to list your home, you will probably receive calls for viewings within a day or two. As your realtor shows your home to prospective buyers, one might decide to put an offer on your house. When this occurs, your realtor will call you with the good news, but the offer made does not settle the deal. You, the seller, must respond to the proposal, and here are some tips to help you know your options and how to evaluate offers you receive.
Review It Carefully
The first thing you will likely notice on the offer is the amount. The amount is essential when evaluating an offer, but it is not the only factor that matters. Every detail on the offer affects the deal, and your realtor can help you understand how this works.
One part of an offer is the list of contingencies. Suppose you receive an offer for the full asking price of your home. You might initially consider this an excellent offer, but you cannot stop reading the offer after seeing the amount. Instead, you must read on to see the contingencies.
Contingencies are things the buyer asks for in the deal, and these items often cost the sellers some money. For example, assume that the buyer has a contingency for you to pay $5,000 in closing costs. If you pay this amount of closing costs, it technically reduces the offer amount by $5,000. Every contingency that costs you money reduces the offer amount, and you should factor this in when evaluating offers.
Determine a Strategy
After reviewing the offer, you have options for responding. Here are the main ones:
- Accept the offer exactly how it is
- Counter the offer
- Ignore the offer and do nothing
Of these three options, option number two is the most common response from home sellers. With option two, you are basically telling the buyer that you accept most parts of the offer with a few exceptions. For example, you might agree to pay only $2,000 in closing costs instead of the full amount they requested. You might also counter the purchase price. If the buyer offered $225,000 for your house, you could counter with an amount of $230,000.
The realtor you hire for help selling your house can provide advice to you for responding. If you have questions or need advice, talk to a real estate agent in your city.