07 Nov TAKE 5: HOW TO VET AN OFFER
Many sellers may be tempted to select the highest offer they receive, but there are several other factors to consider. Here are five areas important to evaluate.
- Down payment. The size of the down payment should be heavily considered when comparing offers. It is often tied to the size of the loan the buyer is taking out and a larger one indicates higher financial stability.
- Earnest money deposit. The EMD is the sum of cash the buyer is willing to put up when the sales agreement is signed to show their high level of interest in purchasing the home. If they back out of the transaction without a good reason, the seller typically keeps it, and if the sale goes through, it typically goes towards their down payment.
- Contingencies are standard for most offers and outline the evaluations and appraisals that need to be completed before the sale is final, such as financing, appraisal, sale of current home, title, and home inspection. The fewer contingencies, the higher the chance of reaching the closing table.
- All-cash offer. Not only does putting down an all-cash offer boost the likelihood of loan approval, but the buyer will not need an appraisal or financing contingency, reducing the chance of the sale falling through.
- Closing date. Consideration of the closing date differs for each seller. For example, if you have already purchased a new home, you may want to close quickly. But, if you are waiting on the money from the sale to start house hunting, you may be okay with a slower settlement.
About Windermere Real Estate
Southern California-based Windermere Homes & Estates is the fastest growing real estate brokerage in California in 2015, according to industry magazine First Tuesday Journal. In just over 5 years, co-owners Rich Johnson and Brian Gooding have opened 17 offices and have had over 550 agents join their team. Their newest achievement, 2016 Brokerage Achievement of Excellence, was awarded to them by the San Diego Association of Realtors® (SDAR). Windermere Homes & Estates was honored to be the first recipient of the new annual SDAR Award given for standard of ethics, commitment to compliance and high regards for running their business.
Windermere Real Estate is ranked the largest regional real estate company in the Western U.S. with over 300 offices and 7,000 agents serving communities in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Mexico. Last year, Windermere closed over 86,000 sides for more than $31.7 billion in dollar volume. Windermere Real Estate was voted the most trusted brand west of the Mississippi by Lifestory Research®. The Windermere family has a proud heritage of serving our neighbors via the Windermere Foundation which funds services for low-income and homeless families. Since 1989, the Windermere Foundation has contributed more than 35 million dollars towards improving lives in the communities where we live and work. For more information, visit www.windermere.com.