What to Ask Your Buyer: Five Important Considerations
While many sellers want to get their homes sold as quickly as possible, taking a moment to consider the various factors inherent in accepting a bid from a prospective buyer. We present to you a five of these most important factors.
Consideration 1: How will your buyer pay?
The ideal situation is, of course, when your buyer pays in cash. On the other end of the spectrum, if your buyer is paying with a mortgage that has only 5% put down up-front – or less than 5% – you can expect significant roadblocks in the selling process. Generally speaking, the more cash you see up-front, the better the offer.
Consideration 2: Is your buyer preapproved?
If your buyer is pre-approved for a mortgage, you can rest easy knowing that a lender has already authorized this person to shop around within a set price range. That said, this range will be determined by the income level which the buyer has given the broker, and this can be exaggerated or change. If these things come out only after the deal is closed, it can cause major headaches.
Consideration 3: Is the buyer planning to occupy or rent?
You might wonder why this would affect the offer. It may not. But in some cases, contingent on the specific rules of the mortgage, your buyer may be required to fulfill certain obligations. If so, you should make sure that you are aware of these before closing the deal.
Consideration 4: Do you understand the sale’s conditions?
If you try to make a deal only to find out that you didn’t fully understand the deal’s conditions, the purchase may fall through, forcing you to start back from square one. The number one condition of home sales are home inspections, which will often uncover items you might have wished would have stayed hidden, and maybe some you weren’t even aware of yourself. When buying a condo, this is still relevant – make sure to be aware of items such as the financial assessment required by the condo association.
Consideration 5: Read your documentation line by line.
In some cases, a more seasoned buyer will add clauses into your contract that work to your disadvantage. When this happens, it can cause major problems. As such, this is the most important reason to have a professional REALTOR® working along side you.
When selling a home, it's always important to have your bases covered, so don’t hesitate to ask the important questions. The goal is ensure that your home is sold in a smooth, error-free transaction.