Lynn's Blog

Four Things To Think About Before You Accept That Offer

Not all purchase offers are created equal.  Here are four things to consider before you accept a buyer's offer for your home for sale in Nanaimo:

1.  Price - When you first put your home on the market your realtor ran comparables to make sure that you're asking a fair market price.  Don't expect a buyer to make a full price offer with their initial contract, because most people feel like they need to negotiate.  But if an offer comes in significantly below your fair market asking price, this could be a red flag that the buyer can't afford your home and that you may waste time negotiating with them. Real estate offer

2.  Deposit - Your realtor can tell you what a reasonable deposit, or earnest money amount, is. 

3.  Contingencies - A standard real estate purchase contract give the buyer and seller certain conditions or contingencies that must be met before the deal is done.  The seller must disclose what she knows about her home, and the buyer has the right to inspect and to obtain financing.  As a seller, beware of any unusual contingencies that could cause your sale not to close.  Two examples of uncommon conditions are a buyer needing to sell her current home in order to buy yours, or a buyer wanting to make closing on your home contingent on the buyer relocating to Nanaimo for a new job.

4.  Closing Dates -  The number of days between the time you accept an offer and the time you remove contingencies should give your buyer enough time to fulfill their contingencies but not so much time that they will drag their feet doing inspections and arranging financing. 

It's important to take all four factors into account when you and your real estate agent analyze a purchase offer.  For example, an offer with a longer than normal closing time could be attractive if the price is what you are asking, the deposit amount is large, and the contingencies will be done quickly.

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