Top 5 Things Sellers Consider When Reviewing Offers

Selling your home can feel like stepping onto a rollercoaster of emotions – from excitement to anxiety and everything in between. Ever wondered what goes on behind the scenes as sellers sift through your offers? From price to contingencies, we’ll explore the five key factors sellers prioritize when reviewing offers, empowering you to stand out in a competitive market.

1. Offer Price: The most critical factor for sellers is the offered price for their house. They carefully evaluate whether the offer aligns with their asking price and market value. Higher offers tend to be more attractive, but sellers also consider the terms and conditions accompanying the price. These days, sellers are oftentimes equating asking prices offers to “lowball” offers with how competitive the market has been. Make sure to discuss with your buyer’s agent the best strategy to show the sellers you are not making a lowball, and you DO want to buy their home.
2. Buyer’s Financial Strength: Sellers assess the financial strength of the buyer to ensure the deal will go through smoothly. They look at factors such as the buyer’s pre-approval letter, down payment amount, and earnest money deposit. A financially stable buyer is preferred as it reduces the risk of the deal falling through due to financing issues. Need I say more?
3. Contingencies: Sellers consider the contingencies included in the offer, such as home inspection, appraisal, and financing contingencies. They prefer offers with fewer contingencies or ones that pose minimal risk to the sale process. Offers with extensive contingencies may signal potential delays or complications in closing the deal. Most sellers we work with will pick an offer with less contingencies over an offer that may be offering more money. Why? Because some buyers will use things like inspections and appraisals to get the seller down lower on price, so it may not always be as high of an offer as it seems with those types of contingencies. Make sure you have a strong buyer’s agent structuring your offer to be as competitive as possible so you do not lose out on your dream home.
4. Closing Timeline: The proposed closing timeline is another crucial consideration for sellers. They evaluate whether the timeline aligns with their needs and preferences. A shorter closing period may be preferable for sellers looking to move quickly, while a longer timeline might be acceptable if the seller needs more time to find a new home or make other arrangements. Pro tip – before having your agent submit your offer, have them ask the seller’s agent what closing date the seller would prefer to show you are willing to accommodate them. You can also write it on the offer in the additional terms.
5. Flexibility and Terms: Sellers also assess the flexibility and terms outlined in the offer. This includes considerations such as the proposed move-in date, the inclusion of personal property or appliances, and any special requests or conditions made by the buyer. Sellers may be more inclined to accept offers that accommodate their preferences and make the transition smoother for them. This can include allowing the seller to leave items behind that they do not want or offering to be flexible on your terms to whatever the seller may prefer. Make your flexibility known because it is definitely a big factor in the offer review phase.

As you embark on your journey to purchase your next home, remember that evaluating offers is not just about the numbers. There are so many factors involved and showing you are aware of those can definitely help make your offer stand out. Looking to buy or sell? I would be honored to interview for the job and share my 20 years of full-time expertise with you.