You’ve decided to sell your South Orange County home, you chose a real estate agent and you prepared the house for pictures and open houses. Now, all your hard work has paid off and you have received an offer. Congratulations! Getting the first offer is very exciting. However, it’s important not to let extreme emotions like excitement or desperation sway you in making a decision. You and your Orange County Realtor need to carefully evaluate the offer and determine if you should accept it, reject it, or offer a counteroffer. Here are some questions to consider when examining an offer on your South Orange County home.
Is the price right?
If the offered price is the same, or higher, then your asking price, that’s a great sign! Because inventory is low in Orange County right now, it’s not unusual to see offers coming in at or above asking price. However, make sure you read through the entire offer to discover any additional fees. If the buyer offers to pay full price, but says you have to cover the closing costs or do an expensive remodel to the master bathroom, it may not be worth it to accept the offer.
If the offer is lower than what you asked, it is still worth it to look over the entire offer. Perhaps they have a time frame that works better with your schedule than other offers, or maybe they are willing to accept the house as is while other offers required repairs. Consider the overall cost and profit of accepting the offer, not just the price.
Is the buyer likely to get financing?
While there is no way to guarantee that a buyer will get financing, you can tell if one buyer is more likely to get financing than another. Buyers that are already pre qualified or pre approved for a loan are more likely to actually get the mortgage once their offer is accepted. So are people with good credit. Many real estate deals fall through because of financing, so try to save money and limit stress by choosing buyers who are likely to get financing.
Can you work within the given timeline?
Most offers will include a timeline, with deadlines for when the offer should be accepted, when the sellers should move out, when repairs need to be made, etc. Make sure that the buyers’ timeline fits with yours. If they need to be moved in by April, but you won’t have a new house until June, will you be able to find alternative housing for those two months or will you need to move on to a different offer?
Are the contingencies beneficial or harmful to you?
Buyers put all kinds of contingencies into their offers. Some of them are common, such as a clause stating that if the buyer doesn’t get financing she does not have to go through with the sale. Others are specific to the property, like a clause stating that the living room has to be repainted or the contract is void. Calculate the cost, time, work and stress it will cause you to fulfill every contingency, then decide if it’s worth it to accept the offer. If there are just one or two contingencies that bother you, it might be beneficial to negotiate and give a counteroffer. If the entire offer is filled with exceptions and clauses that do not benefit you, it may be wise to reject the offer and move on.
Do you have other, possibly better, offers coming in?
If you have a steady stream of offers coming in, you can afford to be picky and choose the one that is most beneficial to you. If this is your only offer, you may want to seriously consider doing everything possible to make it work. Remember to always discuss the pros and cons of every offer with your real estate agent. Her experience will be a valuable source of information in making this important decision.
Every South Orange County real estate transaction is different and your personal situation will be the greatest factor in determining whether or not to accept an offer. Keep open communication with your family members and real estate agent so that as a group you can decide on a course of action that is beneficial to you.
If you have questions about selling your South Orange County home, or if you are still looking for a Realtor to represent you, please dont’ hesitate to call Andrea Ballesteros at 949-690-5159. And if you found this article helpful, please share with your friends over Facebook, Twitter or Google +.
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