Aug. 17, 2018
Important items to consider with any offer are;
• Sales Price
• Financing Type
• Closing Timeframe
• Closing Cost Assistance
• Fees requested
It may seem pretty cut and dry that a full price offer is the strongest offer you can receive. While that can of course absolutely be the case, it is not always so!
Sometimes an offer is received that is over asking price, but there’s a chance that in that case it won’t appraise. If your buyer is getting financing, their lender won’t allow them to pay over appraised value for your home. While the offer may be enticing, they have their appraisal contingency to fall back on (meaning they know you’ll have to ultimately adjust the sales price to appraised value to make the deal work).
You also can have a buyer offer WAY over asking price on your home, so they can compete with other full price offers, but they also request 3% in closing cost assistance, and then if/when the home doesn’t appraise they get to adjust their offer allllll the way back down to ACTUAL market value, and then they still get their 3% in closing cost assistance! A full price offer, without closing costs, would have ultimately been the stronger offer.
In some instances, a cash buyer, although the offers can sometimes be a little lower, is a better option. Cash buyers usually don’t need closing cost assistance, do not have a lender required appraisal to deal with, and can usually close a little earlier.
There are dozens of different scenarios I could pin against each other and explain why one offer is superior to another. The takeaway is, make sure you have an agent who can distinguish which offer truly is the best for you in your situation!