Selling your home: how to assess an offer

Most homeowners assume that, when it comes time to sell, the only thing that matters is how much a potential buyer is willing to pay. But while the financial aspect is certainly a big piece of the puzzle, there are several other equally important factors that should be taken into account when assessing an offer to buy your home.

Whether you’re evaluating one proposal or assessing multiple competing offers, some of the most important considerations to keep in mind include:

·      Purchase price—does the offer match the sale prices of comparable properties in your neighbourhood? How close is it to your asking price or most recent appraisal? Is it a cash offer, or is it dependent on the buyer getting a mortgage? If there are multiple offers, which one offers the highest price for your property?

·      Size of the deposit—how large a deposit is the buyer willing to pay? Are they offering to put down 5% of the purchase price as a deposit, 10%, or more? While the actual numbers can vary from one market to another, generally speaking, a larger deposit indicates a buyer who’s more likely to be serious about buying your home.

·      Closing date—is the buyer looking for a quick closing or do they want a longer timeframe? Does the closing date match your needs and preferences? Or do you want either more time, or a faster sale?

·      Expiry date—does the offer give you enough time to carefully evaluate it? Or does it feel like the buyer is trying to pressure you into making a quick decision?

·      Mortgage pre-approval—has the buyer been pre-approved for a mortgage? Or will they need to qualify for and obtain financing before you can close on the sale?

·      Inclusions or exclusions—does the offer list any appliances, fixtures, window coverings, patio furniture, or anything else the buyer wants included? Or does it specify anything you want excluded from the purchase?

·      Conditions—does the offer come with any conditions, and if so, what are they? Most offers in Canada are conditional on things like carrying out an appraisal or home inspection, doing a title search, reviewing the strata documents, or the ability of the buyer to obtain financing or sell their current home. In most cases, offers with fewer (or no) conditions tend to be more attractive, because they’re less likely to encounter any problems down the road that could cost you time, money, or even derail the sale.

·      Personal touches—last but not least, some buyers write a personal letter expressing what they like about the property or why they want to make your home, their home. For some sellers, personal touches like these may not have a lot of influence on their decision. But if the offers are otherwise very similar – or if you’ve lived in your house for many years and want to see it become a happy home for someone else’s family – sometimes a heartfelt note can end up being a deciding factor.

Questions?

Contact us today to schedule a free consultation, or speak to one of our agents to get the answers to any questions about selling (or buying) your home.