How to evaluate a price offer
Your main objective when selling a house is to secure the best possible deal. This often goes beyond the simple amount of the price, as there are some other elements that you need to take into account when deciding if an offer made for your house is really a good one or not. The financial security and status of the buyer needs to be carefully analyzed. In the event that you have more than one offer for your price, it can be a good idea to seriously consider offers that are not the best price-wise, but offer a greater financial security. A buyer with a full cash payment or one that has a secure and proven financial track-record may be a better choice than an a greater offer which might put you at risk.
Let’s go down to the most pressing concern – money. When you start advertising your house, you already should have an asking price and a minimum price in mind. If your house has a high market value, you’ll most likely get what you’re asking for. Or, if you own a house in a particularly popular area, you might even get several offers beyond the initial asking price. This is the ideal situation, but you shouldn’t outright count on it.
If however you are getting an offer for a lower amount than you have been expecting, you need to consider some aspects before declining. Is the price offered to you fair? Check houses with similar positioning and structure and compare asking prices. The offer might not be very bad after all.
Think about how long you have been advertising your house as well. If the house has been on the market for a very long time, it might be a good idea to take the offer into account. On one hand, there’s the possibility that you won’t get another offer as good in the future. On the other hand, the more time you spend trying to sell your house, the more you’ll be bleeding money. You will continue to have upkeep expenses even if you’re not living in the house anymore.
Buyer interest is also a good estimation of how good an offer is. The more interest buyers show in your house, the better your chances of getting a better deal. But, if there haven’t been too many calls or visits, and the visits that did happen ended up in outright negative responses or vague “we’ll get back to you” type messages that were never followed up on, you should consider cutting back on your price requirements.
You also need to estimate if you can or cannot afford to wait for a better offer. If you are not hard-pressed by time and a few extra months won’t be too much of a problem, you can continue waiting for better offers. But if you’re in a rush to sell your house as fast as possible or need the money urgently for a down-payment of your own, accepting a lower than expected offer might not be such a bad idea. Consider that while you’re already living in a new house, you’re doubling your expenses, paying mortgage or upkeep for both your old and...