Now you have received your first offer. How does a seller evaluate an offer?
When presented with an offer the first thing the seller asks is “How much?” This is only natural as it is all about price.
Assuming the offer price is reasonable the next question should address the terms – “Is this a cash offer?” If so, is there a proof of funds letter accompanying the offer.
If there is going to be a mortgage "Is there a recent mortgage pre-approval letter accompanying the offer?" Most professional real estate agents working with serious buyers understand this and provide it with the offer. [Make sure it is not a pre-qualification letter.]
So far so good…
Now.... ”Is there sufficient escrow money (a good faith deposit)?” When working with buyers this always seems to be a stopping point when preparing an offer. There is no set amount so I always urge buyers to offer enough to let the seller know they are serious but not so much as to not be able to walk away from in a worse case scenario.
Still looking positive now.... “What is the timeline?” Buyers have schedules especially if there is a job transfer involved or perhaps children who need to start school. Sellers have schedules. Lenders have schedules. There are inspections to be conducted. There is a survey to be done. Is it a short sale? There is another great big unknown for your calendar!
Other factors that determine a seller’s response include seller motivation, any repair issues, a counter-offer as in short sale or even family issues like an illness or death or divorce.
How does a seller evaluate an offer? Through consultation with their real estate agent and, if necessary, their attorney or tax adviser.
If you are considering selling your Viera, Suntree, Rockledge or Melbourne, Florida home, call me at 321-693-3850.