What I Do for Sellers: Advising You on The Components of Each Offer
Many of my clients receive multiple offers on their homes, and one of the most important pieces of my job is to help the seller weigh the components and effects of each of these offers.
In one recent instance, a client of mine received three offers on his property. (The property in question had significant deferred maintenance.)
One of the offers had an appraisal contingency which meant that if the property didn’t appraise for the full value of the offer, the buyer could be released from the contract.
The second offer had a loan contingency which meant that if the buyers could not achieve the specifics of the loan stated in the contract they could be released from the contract. It also had a long inspection contingency which would have kept the house off the market during a peak selling period.
The third offer was the highest price but contingent upon the buyers’ house closing escrow. Because the buyers’ property had been on the market for a month without any offers, I encouraged my client to consider the offer only if the buyers would reduce the asking price for their house by $75,000. The buyers agreed, sold their house, and bought my client’s.
The result was a successful transaction for my client, as he received the highest offer for his house, with minimal risk of contingency.
