Selling Guide - Receive Offers

An offer typically contains the purchase agreement (the binding sales contract), terms of the deal, a closing date, amount of earnest money deposit, requests around title and inspections, and contingencies for inspections, sale of the buyer's home, or any other requirement. 

In a seller's market, the seller has two choices to receive offers on their property. The traditional choice is to simply receive them as they come in.  Another popular choice is to create an offer review date, in which you, the seller, will choose what you feel is the best offer on that day.  

While it is understandable as to why sellers may choose an offer review date, consider that it may turn away buyers who do not want the pressure of competing with multiple offers at the same time.  You also risk a buyer not wanting to wait for an offer review date and would prefer to give you two days to decide upon their offer.  When the housing market goes back to a buyer's market, which it will at some point, this choice will be much more important.  

Here are aspects to consider when you review multiple offers: 

• How much earnest money has been offered? The average is 1 - 2% of sale price. 
• What type of financing is needed?  Does the financing work for you?
• How much of a down payment will the buyer make?  A larger down payment poses less risk than a lower down payment. 
• Will contingencies be waived?  This has been a popular, but difficult choice for buyers with less resources.  FHA home loans must be approved with an appraisal, as will most conventional loans. 
• What is the buyer willing to cover in terms of closing costs? 
• Are there any specific or unique requests within the offer to be aware of?

As with any important decision, take deep breaths, ask questions, and communicate with your real estate broker so you are informed and confident in selecting your best offer.