Nearly 1 million houses were sold in the first five months of 2021. If you are looking to put up the “sold” sign to your own home, you know the process can be intense.
When you finally receive an offer, it can be very tempting to accept the offer right away. This is the moment, right?
The moment where you can sell your home and move into the next chapter of your life with enough money to support your future goals. This may be true, but it’s also important to consider your next move carefully. There are several things to evaluate before accepting an offer, even if it meets or exceeds the asking price.
Are other parties interested?
Most of the time, your first offer is a serious one. Chances are the potential buyer knows they are the first offer and are excited because they currently have no competitors. If the offer is below your asking price, you can negotiate for something closer to what you want. It is also important to wait and see what other interested parties are willing to offer.
Waiting can pay off in the end. Having more options gives you more opportunities to secure your asking price.
How closely does the offer match the asking price?
Even if an initial offer is too low for you to accept, keeping your house on the market allows for more offers to come in. The closer to your asking price, the better.
Sometimes, an offer will come in that is over your asking price, and you may be tempted to accept it right away. The odds of this happening are high in some markets but might not always be the case. Listing agents know the market better than most, so it is important to rely on your agent’s knowledge.
Is it a cash offer?
Cash offers are more dependable than most mortgage-based offers. The top three reasons that make cash offers generally better than the alternative are:
- It guarantees a quick closing.
- The closing is nearly 100% certain.
- A potential buyer could end up being denied a loan.
Can you afford to wait?
A seller’s personal situation has a massive impact on whether to accept an offer or to wait for something better. Consult with your financial advisors, real estate agents, and associated parties. You can reach out to The Federal Savings Bank to learn more about smart financial choices.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.
