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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.
