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Offers to Weigh on Your Property – How to Choose the Best One?

Offers to Weigh on Your Property – How to Choose the Best One?

Selling a home is a big decision, and receiving multiple offers can feel exciting and overwhelming at the same time. While having multiple buyers competing for your property is a great problem to have, knowing how to evaluate these offers properly is key to making the best decision. If you’re unsure where to start, don’t worry—Team Nelson is here to help guide you through the process so you can make the most informed choice.

1. Consider the Offers (But Don’t Stop There)

The first thing many sellers focus on is the offer price, and for good reason. A higher offer might seem like the best choice, but it’s important to dig deeper than just the numbers. Not all offers are created equal, and a higher price may come with terms or contingencies that could affect the overall deal.

Tips for Evaluating Offers:

  • Look for red flags: Does the buyer require financing that may fall through? Are they asking for too many contingencies?
  • Compare net proceeds: This is the actual amount you’ll walk away with after paying closing costs, fees, and other expenses. The highest offer may not be the most profitable once everything is considered.

Example:
A seller in Flower Mound received two offers: one for $500,000 and another for $490,000. While the first offer seemed higher, it came with a request for significant repairs. The second buyer, however, was willing to purchase the home as-is, which saved the seller thousands of dollars in repairs.

2. Evaluate the Buyer’s Financial Situation

It’s not just about the price—understanding the buyer’s ability to follow through on their offer is crucial. A strong offer includes financial proof that the buyer can secure the funding to purchase the property. This can be especially important if the buyer is relying on financing.

Things to Look For:

  • Pre-approval letter: If a buyer is pre-approved for a mortgage, they’re much more likely to close on time without hiccups.
  • All-cash offers: Buyers paying with cash can often close faster and reduce the risk of financing falling through.
  • Down payment amount: A larger down payment can signal that the buyer is financially stable, which reduces the likelihood of last-minute issues.

Case Study:
One of our clients at Team Nelson had three offers for their home, with the highest offer relying heavily on financing. After careful consideration, the seller opted for a slightly lower all-cash offer, which resulted in a quicker and more secure sale.

3. Examine Contingencies

Contingencies are conditions that need to be met before the sale can close. Common contingencies include home inspections, appraisals, and the buyer selling their own home. While these are common in real estate transactions, too many contingencies can increase the risk of delays or cancellations.

What to Watch For:

  • Inspection contingencies: Buyers often request an inspection, and if significant issues arise, they may back out or ask for repairs.
  • Appraisal contingency: This is particularly important if the buyer is relying on a mortgage. If the home doesn’t appraise for the offer price, the buyer’s loan might fall through unless they cover the difference.
  • Home sale contingency: If the buyer needs to sell their current home before purchasing yours, the timeline can become unpredictable.

Example:
A seller in Argyle received multiple offers, but one was contingent on the buyer selling their current home. Although the offer was attractive, the uncertainty of the buyer’s timeline made the seller choose a different offer with fewer contingencies.

4. Look at Offers Closing Timeline

For many sellers, timing is everything. You might be under a tight deadline to sell because of a new job, or maybe you’re trying to align your sale with the purchase of your next home. The buyer’s proposed closing timeline should fit your schedule to avoid unnecessary complications.

Questions to Ask:

  • Is the buyer flexible? A buyer who is willing to adjust their timeline to accommodate your needs can be a huge advantage.
  • How soon can they close? Cash buyers often offer a shorter closing period, which can be appealing if you need to sell quickly.

Case Study:
A seller in Southlake was relocating for work and needed to close the sale in 30 days. Although they received a high offer with a longer closing period, they opted for a slightly lower offer from a buyer who could close within their tight timeframe.

Selling your home can be an emotional and complex process, especially when you’re weighing multiple offers. Considering factors beyond the offer price—such as contingencies, buyer’s financial stability, and closing timelines—you can make the most informed decision for your unique situation.

At Team Nelson, we specialize in helping sellers navigate the intricacies of real estate transactions, ensuring you get the best possible outcome. If you’re ready to sell your home and want expert guidance, contact Team Nelson today! Explore our blog for more real estate tips and advice, and let us help you through every step of the process.

 

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