A lot of attention is given to the difficulties buyers encounter navigating the housing market, but today’s market can be equally difficult for sellers.
Your real estate agent can offer advice on comparables, pricing, and accepting offers. This advice, while helpful, can also come with a great deal of latent pressure to just get the home sold. It can be a very difficult and confusing time, but just remember that accepting an offer to buy is a decision that will ultimately be up to you, the homeowner. Here are some questions that can help you in your decision to accept, counter, or reject an offer to buy:
1. Has the buyer been pre-qualified or pre-approved? Unless your home is one of the rare few that hit’s the market and is sold within a few days, selling it will likely be a time and money investment. For example, your circumstances may make it necessary to rent temporary housing or purchase a new home. Making such alternative housing commitments can be complicated if you think your home has been sold and later find out the deal has fallen through from a buyer not being able to secure financing.
2. What is your mortgage payoff? Most homeowners combine the closing costs with what they owe on their home to determine their bottom line. However, do keep in mind that the housing market in certain areas of the country experienced high levels of depreciation over the last few years, which caused many to be upside-down on their mortgage. It might not be the best time to sell if you’re in such a situation.
3. Is your move mandatory or urgent? The urgency and necessity of your move will impact your consideration of an offer. For example, a deadline for a job relocation and the need to avoid foreclosure are two factors that might make you consider an offer that would otherwise be rejected.
4. What’s the current climate of the market? You need to look at the probability of getting subsequent offers, how long your home has been sitting on the market, and amount of traffic generated from open houses and showings.
5. Does the offer seem reasonable to you? Astute buyers may notice your home has been sitting on the market or that there are a lot more sellers than buyers in your area and make a low ball offer. You certainly don’t have to respond or accept such an offer. However, you might consider it or make a counter offer if the sell is urgent or necessary.
Whether you are willing to wait out the highest offer or find it necessary to make exchanges to get the home sold quickly, the most important element is accepting the offer that works for your personal and financial situation.