Clients often ask me, “When I have multiple offers, which offer should I accept?” It’s important to keep in mind that not all offers are created the same. My job is to advise you on the pros and cons of each different offer.
Price is an important factor to consider. However, if you have one offer for $400,000 and another for $405,000, the higher offer might not be the best. You also have to consider things like terms and financing.
For example, if you get an all cash offer that can close in 15 days, that might be your very best offer. An offer that uses conventional financing is better than an FHA or VA loan for various reasons. For example. VA and FHA loans come with stringent appraisal guidelines. Also, a buyer using conventional financing can typically put more money down.
You should also consider the earnest deposit. Usually, someone will put around $1,000 into an escrow account to show that they are committed to purchasing your property. The more earnest money a buyer offers, the more skin they have in the game. In other words, would you rather have $1,000 in earnest money or $20,000 in earnest money? You would want the $20,000!
Finally, there are inspection and appraisal contingencies to consider. As you can see, all offers are not considered the same. You need someone who has a lot of experience to walk you through the process and help you make the best decision.
If you have any questions, give me a call or send me an email. I would be happy to help you!