A crucial step in the home selling process is knowing how to choose the right buyer when selling a home. You might be tempted to assume that the highest offer is the best offer. It’s going to make you the biggest profit after all, right? Not always.
Or, you might assume that all buyers are equal. So if you get multiple offers at the same price, you might as well just roll the dice to decide which one to go with.
But choosing the right buyer when selling your house can be a lot more nuanced than you think. Sometimes the highest offer doesn’t actually lead to the most profit, and sometimes there are factors beyond price point that can motivate your decision, such as the speed of the sale.
This post will offer a few tips on how to choose the right buyer for your house.
Before you start accepting bids, you should establish a minimum level of profit that you will be happy with. This will help your real estate agent strategize with you about optimal pricing. It will also provide you with an easy way to turn down offers. You don’t want to end up losing money on the deal or not making enough to meet the costs associated with your next home.
When judging offers based on profit, don’t forget about things like closing costs, taxes, and fees. If one buyer makes a lower offer but agrees to pay some or all of the closing costs, they could be more profitable than another buyer who places a higher bid.
Some buyers will only agree to the deal if you meet certain conditions. For example, they require certain repairs to be made or that you include some appliance that wasn’t listed as an inclusion. Others may only be willing to complete the deal on the condition that they are able to sell their house first.
If you have multiple offers in the same range, it might help to pick the buyer who is going to cost you the least amount of additional money and hassle.
Sometimes, a buyer needs to move in next month. Others won’t be ready to close for half a year. Working with a buyer whose needs are flexible enough to fit your schedule can help you choose one offer over another. So be sure to know when you want to sell your house before you put it on the market and start comparing bids.
All loans are not created equally. When buyers begin to make offers, your real estate agent will be able to determine for you the status of their financing.
Choose buyers who have already secured a loan over those who are only pre-approved. And if you happen to be lucky enough to have a buyer who is paying in cash, that is an ideal situation because it removes one more hurdle between you and a quick sale.
Walden Novak has been connecting buyers and sellers for years, and we would love for the opportunity to put our experience with the Denver real estate market to your service. Give us a call today or fill out our simple contact form and get the ball rolling on selling your house.