The ultimate goal in a real estate transaction is to get to closing, thus the best offer is the one that gives a seller the greatest "certainty of closing."
There are several factors that can contribute to this certainty such as:
1) financial might. A cash buyer, one with a substantial down payment or an offer without financial contingencies.
2) Willingness to commit. A larger than normal initial deposit (more than 3% of purchase price) or short contingency periods
3) Speed to closing. Transactions that are to be completed under 30 days.
4) Track record of the buyer. In an investment transaction look for a record of performance from the buying entity.
5) Track record of the buyer's agent. Successful people tend to find each other. Equally, successful brokers tend to spend more effort vetting their buyer's before submitting offers.
All of these factors should be considered in addition to the price offered for a successful transaction.
Best of Luck!
Allan S. Glass
ASG Real Estate Inc. Â®
149 S. Barrington Ave, Suite #660
Los Angeles . CA 90049
Direct: 213.973.8637 (213.97.FUNDS)
CA License: 01154002
Visit Allanâ€™s Blog: http://allanglass.featuredblog.com
It does you no good to accept the highest offer that does not intend to close at that price or that is has no chance of closing.
Do you have an agent helping you out? Feel free to contact me if you need additional help.
First and foremost, thank you for posting a question here at trulia. I appreciate it.
Should you always take the highest offer? As many other real estate agents have noted, it depends on several factors. Is the buyer pre-approved? If it is a cash offer, does the person have proof of funds? I hope this helps. If I can be of further assistance, please feel free to contact me by phone, email or text. I am here to help you.
Star Real Estate South County
Price alone is not everything.
For example, cash and quick closing mean certainty to a seller.
A financed buyer could offer more money, but not get a mortgage because the appraisal would not
come into value, for example.
Hope this helps,
Beachfront Realty, Inc.
Additionally there are there considerations such as timeline or caveats or conditions in the offer that need to be factored in. While price is certainly the primary consideration, it's hardly the only one and this is where having an experienced Realtor working exclusively on your behalf and honoring their fiduciary responsibility to you can make the difference between a successful closed sale and an exercise in frustration and lost time.
If you received other offers, then you might want to consider the ones who is likely to close the deal.
Ricky Smiles Jr.
BRE # 01940776
Just my humble opinion
Just keeping it real,
Jason P. Galardi
Multi Million Dollar Listing Agent
Keller Williams Beverly Hills
There a several things to consider when considering a offer. Price is always a strong determinant but not the only thing to consider.
Thing to Consider:
- Prospective buyer's pre-approval from direct lender. Pre-approval should be verified by the seller's Realtor.
- Source of funds (verify buyer's monies for down payment, closing cost and reserves).
- Buyer's closing period examples 30, 60 or 90 days. Based on buyer's pre-approval verify commitment date for loan approval, interest rates and terms. If loan approval is for 45 days and buyer is asking for 60 day escrow there is a problem.
- Buyers good faith money should be a minimum of 03%.
- Verify inspection dates and inspection contingency removal dates.
Price is great but verify that prospective buyer can qualify for the price and loan related to price.Good Luck!
Gail Mercedes Cole
EXP Realty Marina del Rey
The highest offer may not ALWAYS be the best offer.
I have had plenty of cases where the highest offer ended up being a buyer that could not get their loan funded.
Some reasons not to simply take the highest offer:
1. The buyer has a credit score that will not qualify them for the BEST prevailing rate. These buyers may back out once they realize how much their monthly payment will be.
2. Buyer is approved by a loan broker vs. a direct lender
3. Size of buyer's down payment.
4. Buyer has limited cash reserves
Kawain Payne, Realtor
A great agent will review the offers with the seller and discuss not only the price and closing date, but strength of the pre-approval letter, secondary details like inspection and other contingency time frames, the reputation of the buyerâ€™s agent (Some agents are miserable to deal with and should be avoided) and the entire package.
There can always be issues that are hard to calculate that may come into the picture as well. I present a cover letter with my offer explaining my buyers strengths and interest and their appreciation of the house and the neighborhood. I am always careful not to violate any fair housing guidelines, but I give the seller a reason to like my buyer even if they aren't the highest.
It is always best to hire a professional and licensed Realtor who can look up for your best interest!
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