How to Determine the Best Offer for Your Home

To really know if an offer suits your needs as a home seller, there are three factors you need to look at: time, money, and terms.

Once you start getting offers, how do you know which one is best for you?

To determine the quality of an offer, there are three factors to consider: time, money, and terms. One offer might have the highest price, but its terms might require a longer closing. It’s like we always tell our clients—you can have two offers that are both worth $250,000, but each offer can vary in terms of risk once you analyze their terms.

Typically, there are two types of sellers: those who prioritize time and those who prioritize money. Some sellers prioritize each equally, but you need to know who you are as a seller. Do you need your sale to happen in a timely manner because of outside circumstances (e.g., a job relocation) or do you just want to get the most money possible out of your sale? Once you figure that out, you’ll know what kind of offers to look for.

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Always communicate with your agent what factors are most important to you so they can advise you on which offer best suits your needs.

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If time and convenience are more important to you, you should consider going with an instant offer program. These types of programs guarantee quick, convenient, all-cash purchases. However, you usually have to sacrifice something for that convenience. Companies that buy homes do so in order to resell them and make a profit, so you typically won’t sell yours to them for maximum value.

Of course, if you prioritize making the most money possible from your home sale, you’re better off listing it the traditional way. You’re not required to accept an offer just because it’s the highest price, though. Highest doesn’t always mean best. It’s not unusual for a seller to accept a lower-priced offer from another buyer because they’re further along in the pre-qualification process and they’re working with a lender you and your agent trust.

On that note, always communicate with your agent what factors are most important to you so they can advise you on which offer best suits your needs.

If you have any questions about this or any other real estate topic, don’t hesitate to reach out to us. We’d love to speak with you.