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Friday, March 8, 2013

Do You Recognize a Good Offer When You See One?



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South Florida is definitely experiencing a sellers market right now and with that we are seeing a lot of interesting things happening in our marketplace. Just a few short years ago, we had an overabundance of properties on the market but here we are today with sellers finally enjoying the upper hand.

But now that you do have an edge in the marketplace, how do you handle the multiple offers coming in on your home? This is a time to be savvy, be careful and to thoughtfully scrutinize every aspect of offers. Here is a list of six things to look for in an offer:

Is It a Valid Purchase Agreement Contract?
In Dade County, there are one of two contracts that you should reasonably accept; either one written on a CRSP or a Florida Association of Realtors® contract. Anything else is questionable and could raise serious concerns later on for you without the protections in place as included on these known contracts. Also, never accept a verbal offer – always operate solely on offers that are in writing.

Are Disclosures and Addendums Completely Filled Out?
The risk of not having a completely filled out disclosure or addendum is that someone could easily fill those items out after the fact, which could therefore render your contract completely different than what you were expecting.

Is the Buyer Pre-Qualified By a Reputable Lender?
The last thing you want to happen is to find out you have accepted an offer only to learn the buyer was never qualified to borrow the funds needed to buy the house. Before taking the home off the market, be sure to call the lender and confirm the buyers’ financing – and request a letter stating that fact. Local lenders are always a better choice as you can easily communicate with them if needed.

How Much Money Will They Be Putting Down?
These days there are many options for financing and with that you can expect a wide range of buyers looking at your home. With that expanded buyer pool however, there will be some buyers financing most of the purchase while others will bring more money to the table. Try to work with buyers that have more money to put down, mainly because it is an indication of stronger financial capacity which could help to avoid them needing seller concessions.

Are the Buyers Tied Down By The Sale of Their Own Home?
Very often buyers are out looking at homes before their own property has sold and then without adding that contingency to the offer, end up faltering on the deal if their home does not sell in time. To avoid this from happening, try to find out as much as possible in advance so you are armed with that knowledge ahead of time and can decide whether you are willing to allow that risk.

Do They Have a Past Short Sale or Foreclosure on Record?
Banks aren’t the only ones that should be concerned with the creditworthiness of buyers. As a seller, you stand to suffer the loss of time on market if a sale falls through due to an undisclosed item on their credit history that results in a delay or worse, a terminated transaction. Find out as soon as you can whether the buyers are qualified and approved with a lender.