Most think price alone is the greatest consideration but, in my opinion, "terms" is more appropriate. Terms include price.
Although at first glance an offer price may appear to be acceptable it is all the other contingencies and requests that further define the price. Some of those contingencies include...
- Closing date. Sellers have a schedule. They don't want to wait an excessive time. The longer a closing is delayed the more time for something to arise that interferes with closing.
- Closing cost assistance. An attractive offer can become less attractive when the 3% or $5,000 or whatever is subtracted from the selling price.
- Inspection and repair contingencies. While inspections are always recommended having repair requests tied to the offer such as "repair this, that, etc. " listed on the offer at presentation may make the seller believe this buyer will be a pain all the way to closing. Sellers want to avoid pain.
- Financing contingency. When a mortgage is involved there is always a potential problem. A higher offer that may not make the appraisal is just a hope while a slightly lower offer for cash may be the best option.
As a buyer know your offer is more than the price alone. As a seller know the offer received is more than the price alone. Terms will define the "real" price.
Ready to buy a house in Brevard County, Florida? Call me at 321-693-3850. If you are thinking of selling your Melbourne, Florida, send me an email for a free no obligation market analysis.
Image courtesy of jannoon028 at FreeDigitalPhotos.net