How to Determine a Good Offer From a Bad One

When your home is for sale, receiving an offer is very exciting. Most people are ecstatic about the thought of having an offer being presented on their property that they don’t take the time to thoroughly analyze if it’s really a good offer or not.

Use the following guidelines to help you determine whether or not the offer being made on your home is a worthwhile one.

When an offer is made, be sure to determine if the amount of the earnest money (or deposit) is a sufficient amount to indicate a serious offer. If not, what would be your ultimate figure?

Consider the total price offered. How does it compare to your asking price? Does it meet you private bottom line?

Be sure to look at the terms of the financing. Is it a new first loan? Are they requesting any seller financing or seller paid closing costs? How will the terms affect your profit?

Also, take into account the closing date (occupancy). What kind of timeline do you have to find a new home, pack your belongings and be out of your current home? Does it fit your family’s needs?

And finally, be sure to contemplate any contingencies listed in the offer. Do the prospective buyers have a home to sell before they can purchase yours? If so, you may want to be concerned about where their home is located and what their current housing market is like.

All of these criteria are very important points to consider when you receive an offer on your home. And remember, if the original offer doesn’t meet every one of your ideal wishes, you can always counteroffer and try to negotiate a deal that will satisfy all involved parties.