If you are selling your Coachella Valley house in a seller’s (hot) market, you’re probably expecting to get an offer very soon… but once you get an offer, what should you do? In this blog post you’ll read how to prepare for the home buying offer in a seller’s market in Coachella Valley…
In a seller’s market, you’re almost certain to get an offer on your house. But what should you do when you get an offer? Do you just accept it? Do you negotiate? How? What should you do? There usually isn’t much available out there to buy, so your buyer is probably chomping at the bit to buy your home. HOWEVER, it usually doesn’t also mean a smooth fast closing!
When it comes to accepting offers in a seller’s market, it’s best to be prepared. Here’s how to prepare for the home buying offer in a seller’s market in Coachella Valley…
How To Prepare For The Home Buying Offer In A Seller’s Market In Coachella Valley
First, decide on the criteria that you want in the offer.
Ask yourself what’s most important to you. For example, do you want to sell quickly and get a fast possession date? Or maybe you want to get a high selling price. Yes, both of those might be important to you but there is usually somewhat of a trade off. What do I mean by that? Well, even in a hot market a buyer with all cash usually knows they have an advantage over the other buyers and will often be more willing to ask for some repairs or try to negotiate a lower price. A buyer that has to qualify for a loan knows their offer might be a little weaker, so although it’s definitely not always the case, the buyer with bank financing will be a little more willing to take that property with a few scratches or dents.
Second, think about what you want for a bottom-line price.
In a seller’s market, you may get a higher price than your bottom-line price but it’s also very common for property owners to accidentally over-estimate the price they think they’ll get on their house. Therefore, determine your bottom-line price. Chances are, you’ll get an offer somewhere between your bottom-line price and your preferred price. If you get multiple offers, don’t always go with the highest offer! Not all buyers are created equal. A buyer with a marginal credit score may offer more, but there’s also a greater chance that the buyer won’t get loan approval at the last minute. OR, if the property appraisal isn’t high enough the buyer may need to put in some of their own cash. If the buyer doesn’t have any reserve cash, you’ll be forced to sell lower or cancel. So, creditworthiness and cash on hand are important factors to consider in addition to offer price. If you are trying to sell with a tenant, that could create another set of issues. The new owner will have to
Third, think about the possession date you want and consider any flexibility you have.
You might want to move right away, for example, but you could potentially open yourself up to better offers if you don’t press for a specific possession date but instead find out what buyers are willing to offer.
Fourth, get those contingencies released ASAP!
Even though it’s a seller’s market, remember that the buyer is still the one with the money and they could decide to buy a different house. Decide which terms and conditions are absolutely imperative for you and which ones you’re more flexible on. That way, if a buyer has all the money and no contingencies and is willing to close within your preferred timeline, you can work with any conditions they may have. Remember to have the buyer remove their contingencies AS EARLY AS POSSIBLE! Contingencies are the conditions that allow the buyer to cancel and still get their deposit back- once they release their contingencies your chances of successfully closing go through the roof because no buyer wants to lose their deposit.
In a seller’s market, it’s often thought that the seller has the advantage but there may be situations when you might want to sell now instead of putting your house up for sale, cleaning it up, showing it to strangers, and then dealing with inspections and appraisals.