Things to think about if there are multiple offers
Category News
Strange as it may sound, when you're trying to sell property and you've received two (or more) offers on your property, the deal that could make you the most money may not be the best one. It is important that each offer be considered on all of its merits. Of course, one of the advantages of working with a qualified and experienced Jawitz #RealPartner is that you will have all the necessary guidance with regard to multiple offers to purchase. In any property transaction, a #RealPartner will go out of his or her way to get the best possible deal for the seller.
Suspensive conditions: a serious consideration
Most offers to purchase will be subject to certain suspensive conditions. A suspensive condition is any clause that states that something has to happen in order for the deal to go ahead. The most common suspensive condition is the buyer needing to obtain finance in order to purchase the home. Another common example is a would-be buyer having to find a buyer for their current property in order for the deal to be finalised. This means that, should you accept an offer like this, you will have to go through a stressful period while you wait to see whether or not your prospective buyers are successful in selling their property.
If you have another offer on the table which offers slightly less money but no suspensive conditions, it is an option well worth considering. In the same light, an offer that is subject only to a buyer getting finance is more favourable than an offer which is subject to a buyer selling another property. Of course, if you included a continuation to market clause in the offer to purchase agreement, it is possible under certain circumstances to continue marketing your property while you wait to see if your initial buyer can meet the suspensive conditions.
A buyer who has a deposit is a promising buyer
At the moment when a would-be buyer who has fallen in love with your home signs the offer to purchase agreement, they are unlikely to have secured the finance required unless they are a cash buyer. An important question to ask is whether or not they have a deposit to put down. The banks look favourably on applicants who have a deposit of 10-30% to bring to the table, although this is not always necessary. Related to this, a buyer who can show that he or she has been preapproved for a home loan may be more promising than another buyer - even if the other buyer has put in a slightly higher offer.
A cash buyer may be the best offer of all
It is rare for a prospective property seller to receive a cash offer for their property. If you are one of the sellers who does receive such an offer, it is worth taking very seriously. The simple reason is that there are far fewer possible complications with a cash deal. However, to avoid any unpleasant surprises, you should always ask the prospective buyer to provide proof that they have the necessary funds available.
The date of occupation: does it fit in with your plans?
Each offer to purchase will include a date on which the would-be buyers expect to receive the keys to their new property. The best-case scenario - and the best way to ensure a stress-free transfer process - is that the buyer wants to take occupation on the day that transfer is finalised. If the date suggested by the buyer does not suit you, it is possible to suggest an alternative date. However, if you have another offer that comes with the right date, it may become the more appealing offer, even if it is slightly lower in monetary terms.
Ultimately, the decision of which offer to accept must be made upon consideration of all the details. Even if you are an investor with vast experience in the property market, the best way to navigate these waters is with the assistance of an expert. Contact the Jawitz team today and allow one of our #RealPartners to help you find the deal that's right for you.
Author: Jawitz Properties
