Why the strongest offer might not be the highest.

Introduction

When you’re selling your home, receiving multiple offers is an exciting milestone. While it’s tempting to go with the highest offer, it’s important to remember that there’s more to an offer than just the price. Factors like contingencies, closing timelines, and buyer qualifications can significantly impact the outcome of your sale.

In Burbank’s competitive real estate market, knowing how to evaluate the strength of an offer holistically can make all the difference. Here’s how to look beyond the price and choose the best offer for your situation.

1. Examine Contingencies
Contingencies are conditions that must be met for the sale to proceed, and they can introduce risk. Common contingencies include:

• Inspection Contingency: Allows the buyer to negotiate repairs or credits based on inspection results.
• Appraisal Contingency: Requires the home to appraise at or above the offer price, which could delay or derail the sale.
• Financing Contingency: Gives the buyer the option to back out if they can’t secure a loan.

Fewer contingencies generally mean less risk and a smoother transaction, but it’s important to balance contingencies with the overall offer terms.

2. Evaluate the Buyer’s Financial Strength
The buyer’s financial position plays a critical role in the success of the transaction. Consider:

• Cash Offers: These eliminate loan-related delays and uncertainties, often leading to quicker closings.
• Down Payment Amount: A larger down payment signals financial stability and reduces the risk of the deal falling through.
• Pre-Approval Letter: Ensures the buyer has been vetted by a lender and is ready to proceed.

Financially strong buyers provide peace of mind and reduce the chances of complications.

3. Look at the Closing Timeline
Timing can be just as important as the price. Ask yourself:

• Does the buyer’s proposed timeline fit with your plans?
• Do you need a quick closing to move into a new home or avoid carrying two mortgages?
• Can you accommodate a longer timeline if it means securing a stronger offer?

The right closing timeline can make your transition smoother and stress-free.

4. Consider the Buyer’s Motivation
A motivated buyer is often more likely to follow through on the sale. Signs of motivation include:

• A personal letter expressing their interest in your home.
• A willingness to waive certain contingencies.
• Flexibility in meeting your needs, such as accommodating your preferred closing date.

Understanding the buyer’s motivation can help you feel confident in their commitment.

5. Weigh the Net Proceeds
The highest offer doesn’t always mean the highest net proceeds. Consider factors like:

• Seller Concessions: Are you being asked to cover closing costs or repairs?
• Appraisal Risks: Could the home’s appraised value affect the buyer’s ability to meet the offer price?
• Repairs and Credits: Will the buyer request significant repairs or credits that could impact your bottom line?

By calculating the net proceeds of each offer, you can see which one truly benefits you the most financially.

6. Work with an Experienced Realtor
Navigating the complexities of multiple offers is easier with a skilled Realtor by your side. Your Realtor will:

• Help you compare offers holistically, considering both price and terms.
• Provide insights into market trends and buyer behavior.
• Negotiate on your behalf to secure the best possible outcome.

With professional guidance, you can confidently evaluate offers and make an informed decision.

Conclusion

Choosing the right offer when selling your home is about more than just the price. By considering contingencies, buyer qualifications, closing timelines, and net proceeds, you can select the offer that aligns best with your goals.

If you’re selling your home in Burbank and need expert guidance, contact Christian Perez, your trusted Burbank Real Estate Agent. Together, we’ll evaluate your offers and achieve the results you deserve.