Well the day has come and you’re putting your house on the market for $500,000 dollars. However, you need to sell your home within 60-days so that you can move into your new home that you made an offer on. With vulture investors and buyers in low-ball mode, you expect them to offer below list price. The question is which offer is the right offer and do you need to consider offers below your list price?
You have hired a good real estate agent who has researched several comparable homes in your area, knows the trends of your neighborhood, and has consulted with you on how to market and price your home competitively. The ultimate goal is to sell your home for the highest price within 60-Days.
The agent knows they must market your home aggressively. The agent has hired a home stager, a professional photographer, and has a plan to market your home well through print advertising, the Internet, newsletters, open houses, and for some luxury homes, magazines.
So your house is priced right, looks great, and has a well positioned marketing strategy. Now what?
You have heard horror stories of houses being on the market for six, nine, and even twelve months, but you have 60 days to sell. At this point, your nerves are getting the best of you, but remember your agent is an expert in real estate research, real estate trends, real estate marketing, and most importantly real estate transactions.
Low and behold the first weekend goes by and an offer comes in. The offer is for $470,000, closing in 30 days, and the buyers are putting down five percent.
Well you are probably going to counteroffer, but how do you decide if this is the right offer for you. If you are waiting until this point to figure out if this is the right offer for you, chances are high that you’re going to regret your decision to take or reject a particular offer.
Know your Bottom Line
So here are a few things every seller should think about before they put their house on the market in order to pick the right offer. Your agent has done extensive research so you know your house is competitively priced. First ask yourself what is your bottom line. What is the lowest amount that you will accept, and break that amount up according to time periods? For example, what will be the lowest you accept if an offer comes in during the first three weeks, 45 days, 60 days or beyond? It may look something like this:
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· After 30 Days – $490,000
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· After 45 Days – $480,000
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· After 60 Days – $470,000
By using a time-line based drop-down strategy you can hedge against taking a low-ball offer to soon.
Know your Market Conditions
Second, know your numbers and you will know your home’s value. You can’t make an informed decision unless you know your local real estate market. Also realize that market conditions can change rapidly. Be aware of any new factors that can influence your homes value for the positive or negative. These numbers include the average days on the market (how long it takes to sell a house in your area), the price of like-properties that are currently on the market, pending real estate transactions, interest rates, foreclosures, and the prices of homes that have sold in the last three months. Remember that the current market determines the value of your home and there are several factors to consider.
Know the Players and the Terms of the Deal
The third consideration is to be aware of the players and the terms of the deal. Ask yourself the following questions:
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What type of financing are the buyers using?
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· How much are they putting down?
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· How long is the financing contingency?
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· How long is the inspection contingency?
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· How far out is the close date?
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How much earnest money are the buyers depositing into escrow?
These terms may feel minor to you, but it provides key insight to your likelihood of getting a transaction closed on your time line.
Having a 60-day time line to sell your home can add tremendous pressure. However there are strategy-rich ways to insure you get the best offer at the best price. Knowing how to pick the right offer for you starts with you knowing your numbers, knowing the current conditions of your market, and knowing the players and rules of the offer. In today’s market the highest offer is not always the best offer. Each offer requires careful scrutiny to insure that you are getting the best deal within your time frame.
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