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What to Look for in a Purchase Offer

What to Look for in a Purchase Offer

When it comes to selling a house, one of the most exciting parts is when the offers start rolling in. But then you’re faced with a problem. How do you choose the best offer?

Hint: the answer isn’t the offer with the highest purchase price.

To choose the best offer, keep these 4 factors in mind in addition to the purchase price.

Preferred financing method.
Some sellers will only consider cash offers right now, and that’s totally fine. Some sellers don’t care how the house is financed as long as they get money in their pocket by the end of the sale. If you have a strong preference on how the purchase of the house is financed, make sure to consider the financing method in your offers

Trust money deposit.
You want a buyer who really wants the house and has the funding to go through with the sale. Pay attention to the amount of Trust money deposit (the money that comes in with the original offer), because typically, the larger the amount of money put into Trust deposit, the more serious the buyer.

This is a big one. Sometimes offers will come in with a list of conditions that seems to go on for days. Generally speaking, you’ll want to avoid these offers, even if they offer a high purchase price. When buyers are really picky about conditions, they will usually find something wrong with the house and then try to bargain with you to get the purchase price down, making their original offer worthless.

As a seller right now, you have a lot of choice when it comes to timing. If you want to be out of the house super quickly, look for a timeline with less time before closing day. Or if you need time to find a new house after you sell, find an offer that has more time built in.

As you can see, the highest offer does not necessarily mean the best offer. There are several factors that you should consider before making your choice. And don’t worry, your agent will analyze each offer and provide recommendations on the best one.

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.