One of our agents at Stanton Company did such a great job marketing one of our listings that there were 5 offers made right off the bat!

Now it is as easy as just picking the highest offer, right? Often that is the case, but there are other important factors to consider:

– Equity in the deal – You got some great offers over the asking price, but what if the house doesn’t appraise (which can happen in a rising market as values are based off past sales)? The buyer with more equity in the deal are less impacted by appraisals. E.g. if a house is under contract for $100,000 but only appraises at $90,000, a bank may only be willing to lend $72,000, 80% of the appraised value of $90k. For the buyer financing 70%, they only needed $70,000 to proceed with versus the 80% financing buyer that needed $80,000 and is now $8,000 short.

– Closing date – Can the buyer close later to let you finish out the school year, or quickly so you avoid carrying costs? There are likely definable values for different close dates.

– History of the buyer – Did they lose bids on 3 deals and are now eager to get this house? Maybe they blew up 3 deals by being difficult to work with.

Stanton Co. strives to provide good council to everyone we work with, and we always say that our job really just begins when offers are in hand.

Contact me for further insight on navigating the home selling process, Rich