What other criteria or factors determine the best offer? We know highest offer. Or does it depend on the lender and or buyer?

Asked by Jajudge, Bowie, MD Fri May 17, 2013

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8
BJ Matson, Agent, Potomac, MD
Fri May 17, 2013
many factors can weigh in

Highest 'net' offer is a starting point
But what if it exceeds what the appraiser comes in and appraises it for?
A lesser, but all cash offer would make more sense if Seller feels it won't appraise for a higher amount anyways.
A lower cash offer will also be considered since there isn't the risk of the loan getting denied. There also won't be a Lender ordered appraisal to contend with. Closing can happen fast.

With all things equal, many times a buyer's Financial Info Sheet is requested.
The strength of the buyer will be reviewed;
Employment history, income, salary?, and assets...
These all come into play when comparing similar offers.

Is it a local lender the realtor trusts?
http://www.choicerealestate.net/blog/financing/
Or an out of state lender who can't be held accountable, with Underwriting in Nebraska.

Relationship with Realtor. Is this a known agent who is trusted and has a reputation of closing buyers. It takes a special agent to close a lot of buyer business... and a lot of persistence.

BJ Matson
301-257-1270
Remax Town Center
1 vote
Piero Marinu…, Agent, Silver Spring, MD
Fri May 17, 2013
Every part of your offer can be put into a pros/cons chart. Clearly, the offer price needs to be strong, but it doesn't necessarily have to be the highest.

Your agent needs to walk you through this, and they should be able to tell you what your offer price needs to be based on the strength/weakness of the rest of your package.

Let me know if you have any further questions, glad to help.
1 vote
Akil Walker, Agent, Upper Marlboro, MD
Fri May 24, 2013
Hello Jajudge,

There are so many factors that have already noted below in other responses. Sometimes it can even come down to a letter from the buyer to the homeowner as to the reasons why the want this property i.e. it has amazing backyard where my kids will be able to play for years to come. if all other factors are equal, a personalized letter may move a seller to go with that offer.

Good luck
0 votes
Jody Seibert, Agent, Bel Air, MD
Fri May 17, 2013
So many things are factored in. Cash vs loan. Loan type. Contingencies ( inspections required, home sale, etc) Time needed to close. How strong is the buyer, And yes, sometimes the lender. The list goes on and on. If you are in a multiple bid situation, your bid should be the highest abd best that YOU are comfortable making. You may not get the home, but there are more out there. Just don''t go crazy in your offer.
0 votes
Tyra General, Agent, Upper Marlboro, MD
Fri May 17, 2013
You've received some great things to consider. To this I would add that every transaction is different and therefore the criteria and factors used to determine the best offer for one seller may be totally different for that used for another seller.

Tony touched on some pretty good factors to keep in mind.

I would really suggest you have a lender that not only really understands how to do loans, but how to also complete loans according to the timelines that have been set.

Feel free to contact us for a free consolation.

We wish you the best.

Tyra
Web Reference:  http://dcmetrohomeguide.com
0 votes
Jessica Hood…, Agent, Gambrills, MD
Fri May 17, 2013
Smart sellers also consider the reputation of the agent and lender, how professionally (or not) the offer was prepared. What type of loan is being used (conventional, FHA or VA) and the amount of the down payment. Whether the offer is within an appraisable value. They will also consider the closing date that best meets their needs and whether or not a buyer will extend a post-settlement occupancy agreement if needed.

We are in a strong sellers market in this area with very limited inventory so all of these factors come in to play. Best of luck!
0 votes
Tony McMahon, Agent, WHITE PLAINS, MD
Fri May 17, 2013
Hello, many factors go into a successful offer, including the following

Lender - Local Direct Lender as opposed to someone 3,000 miles away
Type of Loan - Some loans are more restrictive, Cash offers are great
Closing Date- sooner is normally better than later unless the seller needs a longer more flexible date
Type of Contingencies - the fewer the better
Completeness of Offer
The Net Proceeds To Seller

There are many additional factors that could be mentioned as well.
0 votes
Ron Thomas, Agent, Fresno, CA
Fri May 17, 2013
If the Seller is a Bank, they may not want a quick escrow, they may need the extra time.
If the Seller is an individual, they may jump at a short escrow; you need to know.
The Seller can be swayed by a larger Deposit; it shows that the buyer is committed.
If the Buyer asks the Seller to pay for Inspections; that can add.
The Escrow fees and Title policies are normally split; but can be dumped on one side or the other.
If the Seller need to stay in the house after the Escrow closes, for any reason, that could affect the decision.
If the Buyer is using financing that infringes on the Seller, such as Closing Costs or Inspections.
If the Buyer asks the Seller to absorb some or all of the Closing Costs.
If the Buyer presents a professional image; by having a professional agent representing them.
If the Buyer intrudes on the Seller, without notice or appointment.
If the Buyer criticizes the Sellers work or taste, with the intent of driving down the price.
0 votes
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