Comparing multiple offers can be a confusing process for Dover NH sellers. The habit is to focus solely on price, but that may not be in a sellers best interest. There are many different terms in an offer that sellers should contemplate in order to identify the best offer. This article contains some techniques to help you in comparing multiple offers on Dover NH real estate.
An Overview Of Comparing Multiple Offers On Dover NH Real Estate
It is normal for conditions such as an inspection and mortgage approval to appear in an offer. Sometimes special contingencies are added by buyers. Fewer conditions lead to a better chance of closing. Furthermore, some contingencies are more risky than others and can depend on the status of the real estate market.
There is a dramatic difference between a pre-qualification and a pre-approval, especially when comparing multiple offers. A pre-approval is traditionally issued after a mortgage company verifies a buyers credit. A pre-qualification includes no such verification. Pre-approved buyers are, therefore, better positioned to get final approval for a loan. Sellers will lose valuable time from buyers who cannot get financing and back out of a sale. The type of loan is also important since some types of loans have strict guidelines on the borrower and property, or can take longer to process.
Deposits express a buyers good faith. It also protects a seller from a buyer backing out from a purchase for a reason unrelated to contingencies. Lastly, the amount of escrow monies may indicate a buyers financial stability. The amount of deposits must be closely evaluated in comparing multiple offers for these reasons.
Sellers should avoid making price the primary consideration when comparing multiple offers, particularly if closing promptly is a goal. Delays can be expensive and therefore affect the net earnings from the same of a home. Furthermore, a home that gets re-listed after an offer terminates will likely sell for less due to loss of momentum. An experienced real estate agent can help you carefully evaluate all the terms of contracts and properly compare them.
This blog post with an overview of comparing multiple offers on Dover NH real estate was prepared by Dick Cook at Coldwell Banker Peggy Carter Team.