Selling a Tucson home, especially in today's hot seller's market, can be both stressful and exhilarating. We still see sellers receiving multiple offers on their homes. The first thing many sellers focus on is how much money the buyer offers. But, you may want to weigh some other equally important factors when considering which home offer to accept.
Weighing a Home Offer: What Sellers Should Focus On (Other Than Money)
Contingencies are a common occurrence with a home offer. However, the fewer the contingencies, the better. Why? Because if a contingency is not met during escrow, you run the risk of the deal falling through. Some common contingencies include a home sale contingency (the buyer needs to sell their home first), an appraisal contingency, a home inspection contingency, and a financing contingency. If one buyer needs to sell their home first while another one already sold theirs, the latter buyer's offer may be more attractive even if it comes in slightly below the former's offer.
Type of Financing
First, an offer should include a pre-approval letter at the very least. If not, set it aside. A buyer who shows that their financing is at the pre-underwriting stage is even better. Sometimes, buyers submit an all-cash offer. This is great because they often waive an appraisal contingency (required by lenders before they approve a buyer's loan). Since the appraisal part of escrow tends to take the most time, this also means that your time to close gets cut down considerably. However, keep in mind that all-cash offers usually come in below asking, sometimes tens of thousands below. Even so, this may still be the best one depending on the other offers you receive.
Timeline That Fits Your Needs
Always look for an offer that fits your timeframe. Have you already moved out and on to a new place? You might want to look at the shortest terms. Need a little time after the sale in order to find a place? A home offer with a lease-back option works better for you.
Larger Earnest Money Deposit
Finally, see how much they want to put down for their Earnest Money Deposit. More money shows a more serious buyer. After all, if they walk away from a deal where contingencies were all met, you get to keep this money. Therefore, someone with a larger earnest money deposit would appear to be a stronger buyer. They have more to lose if the deal falls through. While 1% to 3% is typical, an offer with more may be the better choice over someone with the same offer but a smaller deposit.
Before you accept any home offer, weigh the pros and cons of each. Discuss your options with your REALTOR®. Their expertise proves invaluable in cases like this. Then, let the buyer with the winning offer know that your home will shortly become theirs. Congratulations!
Rebecca Schulte, Schulte Real Estate Group, Your Source for Tucson Real Estate