Why a higher offer is not always better

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Older man holding a leather folder, standing in front of a for sale sign in front of a home

08/01/2014 | Author: Ward Lowe

If you received two offers on your house that were $5,000 apart, you should take the higher one, right? Not so fast.

Sure, money plays a huge role in your decision to accept an offer, but it shouldn’t be the only one. Here are some other questions to ask:

Does the buyer have the money?
Without cash or a letter from a lender, your buyer may not be able to afford the price he’s proposing. Your Texas REALTOR® can help you tremendously by making sure that anyone who places an offer on your home is qualified.

How much earnest money is included?
Earnest money is an amount a potential buyer will put towards the sale in advance of the closing to show he’s entering into this transaction in good faith. A high amount of earnest money usually indicates a serious buyer. If the transaction closes, the money counts toward the downpayment; if it doesn’t close, the seller in some circumstances gets to keep the earnest money.

When’s the closing date?
Determine if the timeline for the transaction matches your schedule—you and the buyer may have deadlines that don’t mesh well.

Is the buyer asking for anything unusual?
Buyers can put all kinds of things in an offer. They can request an option to terminate, ask for repairs, see if you’ll leave the appliances, and make the offer contingent upon the sale of their current home. Your Texas REALTOR® can help you decide what is reasonable.

It’s a wonderful feeling when someone presents you with an acceptable offer for your home. Just make sure you understand all parts of an offer, not just the dollar signs.

Categories: Sellers
Tags: selling, offer, earnest money, closing date


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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