Top 5 Things To Remember When Considering Offers
A homeowner selling their house crosses their fingers for an excellent offer to come through. While luck plays a part, sifting through all the St. Albert real estate agents and finding the perfect fit plays an even bigger role.
In 2022, home prices have fallen across Canada. With interest rates hiking, 44% of Canadians are putting a pause on their home shopping as a result. However, Edmonton remains one of the strongest markets. Edmonton expects to see price growth of 1.5% by the end of the year. There’s still potential to get multiple offers on your home!
Last month, I answered some of the top questions about selling your home. This month, I wanted to continue providing helpful information by outlining the most important things to remember when considering offers on your home.
Review All Contingencies
Most offers will have contingencies (also known as conditions), which are terms in a contract where the buyer or seller can terminate the agreement if the terms aren’t met. For example, inspection contingencies are common, where the buyer can negotiate for repairs after the house inspection.
Financing contingencies are in place if the buyer’s mortgage falls through. A home sale contingency means that the buyer can’t purchase the home until they sell their own. For each, it’s important to weigh the costs and benefits and what you’re willing to accept to sell your home.
In most cases, the fewer the contingencies, the better for sellers as there are then fewer chances for the buyer to back out of the deal. In a hot market, buyers will waive their contingencies, so they have a better chance of having their offer accepted.
Consider the Buyer’s Payment Method
In some cases, a buyer might present a cash offer. These sales often go quicker as the buyer doesn’t have to qualify for a mortgage. But is faster always best? Sometimes these quick sales don’t go as smoothly, and you may even need extra time.
Buyers who offer cash may also have requests, such as dropping contingencies to permit a faster sale. Again, it’s best to weigh whether this aligns with your needs.
Without a mortgage, it’s essential to know whether they’ve arranged financing for a home loan. Requesting proof of funds can help determine if this is a good offer.
Even if the buyer is securing a mortgage, you want to investigate how they will purchase the home. The transaction tends to go smoothly and efficiently if they’re using a well-known lender.
Emotional Considerations of Selling
Sometimes the head and the heart must battle when looking at offers. For example, when there’s a high demand for houses, buyers may send an offer letter alongside their official offer. Offer letters are skillful and earnest, trying to pull at your heartstrings.
Does it matter to you what happens to your property? Sometimes, you might have a deep attachment to the property and want to pass it on to an invested new owner. In other cases, you may be ready for a quick sale and only consider the logistics.
You also may have to deal with what others want. For instance, neighbours may have opinions about whom they wish to move in (a family, no renters, etc.). Some St. Albert real estate agents may try to sway you to a specific offer. It’s important to remember your own needs and stick to them.
Your Move Out Date
Some people are looking to move out as soon as possible to avoid paying two mortgages or so they can offload one more worry on their list. In this case, you might be looking for things like a cash offer or fewer contingencies.
For others, they may need more time to move if they haven’t found their next home, need to do renovations, are making a big move, etc. If you need more time to move out, see if the buyer will accommodate it in the contract. A seasoned Realtor can help with these date transitions by the means of tenancy at will for example.
The Highest Price Isn’t Always the Best
Having multiple offers on a home is a dream come true. Yet, as you can tell from the above point, many more factors come into play beyond the price.
Think of the price, any contingencies, what you need from the deal, and the ability for the deal to close. Review the terms of the entire contract and consider any extras that buyers may be willing to throw in. When in doubt, working with the right real estate agent can help you determine the best deal for your needs.
Find a St. Albert Real Estate Agent
When you’re nearing the finish line to selling your home, you want the process to go as smoothly as possible! As one of the area’s top real estate agents, I want to help you find your new dream property.
Contact Jeneen by phone at (780) 904-4240 or via email at jeneens@remax.net.
