I have received several offers on my house. Which one should I accept?

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In today’s booming real estate market, many sellers are finding tons of buyers interested in their properties. In fact, it is currently common for home sellers to end up with multiple offers on their homes.

If you’ve received multiple offers from interested buyers, you’re in a great position. But how do you decide which one to accept? Here are some factors to consider.

The price is important, but look at other terms

Most home sellers want to get the highest possible price for their homes. It’s a simple result: you walk away with more money in your pocket.

But if the amount that a buyer is willing to pay is an extremely important consideration, it usually shouldn’t be the only thing that you look at when you receive multiple offers. There are a few other key selling terms to compare.

Carefully consider the following issues.

Is there a possibility of inspection?

Most homebuyers make offers conditional on a satisfactory inspection. Essentially, they create a condition for the sale, and the sale will only take place if the inspection does not reveal any serious issues.

If there is an inspection possibility, it means that if an inspector finds something wrong with the property, the buyer could use it to reopen price negotiations. And home inspectors almost always find Something wrong with a house.

If you have two offers that are close in price, but one buyer offers a little more and has a possibility of inspection and the other has a slightly lower offer but is not requiring inspection, you may want the second buyer.

By eliminating the inspection problem, you reduce the chance of an issue that derails the sale or the buyer uses as leverage to get you to accept less.

Is there a possibility of funding?

Home buyers also frequently set up a financing contingency. This means that if they cannot be approved for a mortgage, they don’t have to close the sale or lose their deposit.

Unfortunately, a financing contingency means your sale is conditional – the borrower must be creditworthy and get the loan. This may not be a deciding factor, but if you accept an offer with this eventuality, ask the potential buyer to provide proof of mortgage pre-approval.

If there are similar offers and one has this possibility but the other does not, you will probably want to go for one without it.

Are there other possibilities?

Buyers can include a host of other conditions, ranging from a contingency requiring the home to be appraised for what they are paying, to a condition that conditions the buy-to-sell of the buyer’s property.

The more conditions the sale has, the greater the chance that the deal will collapse. So, when everything else is (or almost) equal, it’s usually best to err on the side of accepting an offer with fewer terms.

What is the closing date?

If you want to move to a specific timeline, think about when potential buyers will want to close the deal. If you hope to act quickly, you might want to prioritize buyers who are ready to buy the money and want to close as soon as possible. On the other hand, if you don’t want to commit to a fixed schedule, you might prefer an offer with a flexible closing date.

At the end of the day, the key is to see the big picture: find an offer with a hefty price tag that isn’t likely to crumble and allows you to move out when you’re ready. Pick the one that ticks most of your boxes in terms of price, schedule, and terms.

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We strongly believe in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the advertisers included. The Ascent does not cover all the offers on the market. Editorial content for The Ascent is separate from editorial content for The Motley Fool and is created by a different team of analysts. Ally is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Christy bieber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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