If you have been trying to sell your home and are finally receiving some offers, congratulations! Don’t be too eager though. The seller should always carefully review any offers on their home before deciding to sell, no matter how long it has been on the market. This not only helps ensure that you receive fair market value but can help you avoid the costly fees associated with selling the home. As a general rule of thumb, there are a few tips that you may want to apply when reviewing all home offers.
Closing Costs and Associated Fees
Some potential home buyers will offer to pay what the seller is asking, providing that the seller pays closing costs. While this may seem like a perfectly legitimate opportunity, you may want to think about this one. In some cases, it may even be wiser to accept a lower offer than what it would be to accept an offer for the desired amount and pay closing costs. These fees can significantly vary among lenders and you can lose money. If for example you are asking $100,000 for the home and the buyer makes this offer but you have to pay for closing, which is $5,000, you are in essence only selling your home for $95,000 versus the potential buyer offering $98,000 without the addition of fees. Screen all home offers meticulously to avoid this pitfall.
Evaluating Home Offers in the Neighborhood
This is also another crucial aspect to reviewing offers on your home. You should always know what homes in your particular area are going for and then compare these to yours. However, you should also take into consideration the differences in the homes. If another home in the same community has sold for considerably more or less than the offers you have been receiving on your home, investigate. The size of your home, the condition and whether or not you are next to neighbors that maintain regular upkeep can play a significant role in the offers that you receive. In this case, you may be able to make small, inexpensive improvements to increase the size of the offers on your home.
Is Your Home Listed At a Good Price
When considering offers for your home that are less than desirable, you may automatically conclude that your home is worth more and vow not to sell. However, are you asking a reasonable price for your home? This doesn’t directly apply to how expensive or inexpensive the home is, but to fair market value. Homes have significantly decreased in value since the early 2000’s and trying to sell your home for more than what it is currently worth will lead to smaller home offers, if any. In some cases, you may be better off to review these offers, even if they are less than what you expected. There is always some room for negotiation and you may find after careful review of home offers, can lead to this and eventually the sell of the home.