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How much money down.
If they have own house to sell.
Whether loan pre-approved, etc.
What do you say?
When I put my house or a piece of property that I own up for sale, I have a number in mind that I want to get for it. That number may not be exact to the penny, but I know pretty close what I want to get. The sooner after putting it on the market, the firmer I am in my intent to get my price. Conversely, the longer it has been on the market, the more flexibility I have in my price.
Price is certainly a very important criteria, but not the only criteria in evaluating offers. Time to closing, type of financing (if any), financial strength of the buyer, inspections called for, etc all play a role in evaluating any offers.
In my view, price is usually more negotiable than the terms and the insistence on finding a STRONG buyer. I don't want to sign a contract to take the property off the market and then start worrying about whether the property or the buyer will qualify and continue to close the deal. That's why I usually sell my properties without a Realtor. I get a chance to talk in person with the person who is looking at the house and through conversations and experience, I've learned how to size them up pretty well. So, while the buyer is examining the house, I'm examining the buyer.
I've also learned to examine the buyer even further by what terms he/she is willing to put in writing in the contract. These things tell me the seriousness and the amount of commitment that the buyer has to the deal. If I get the feeling that the buyer is a "tire kicker" or a "lowball" offerer, he/she and I likely won't agree to a contract.
So, basically, I'm saying that you need to size up the deal AND the buyer from all angles and determine what's important to you. For me, a solid deal from a solid buyer is far more important than a few $$$ on the contract. Of course, all this presumes that you (the seller) are able to distinguish a solid buyer and a solid deal from one that's not. If you can't, then you'll have to rely on a realtor for help and I'm fully aware of whom most realtors are REALLY working for.
I've learned how to size them up pretty well. So, while the buyer is examining the house, I'm examining the buyer.
I've also learned to examine the buyer even further by what terms he/she is willing to put in writing in the contract. These things tell me the seriousness and the amount of commitment that the buyer has to the deal. If I get the feeling that the buyer is a "tire kicker" or a "lowball" offerer, he/she and I likely won't agree to a contract.
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You sound very experienced. Can you take some time to elaborate on what signals and clues you notice to determine a strong or weak buyer?
You sound very experienced. Can you take some time to elaborate on what signals and clues you notice to determine a strong or weak buyer?
Ask questions. Ask how soon they plan to move. Ask if they need to sell their house before buying something new. Ask if they'll be paying cash or need to get a loan. If they need to get a loan, ask if they've applied or been approved yet and what type loan.
You might also ask why they're moving, what they're looking for in the new house, and what sort of price range they're considering. Also, during the conversation, I'll typically ask what type work they do, family size, etc.
I'm not saying that you should meet them at the door and immediately start down your list of questions. Make them feel welcome and be friendly. Start a conversation, not an inquisition. Offer to answer their questions about the house or the neighborhood to the best of your ability.
Some people don't want to talk or answer questions. That's OK because they're probably not interested in your house or not serious buyers at the present time. If that's the case, just politely show them the house and thank them for looking. You don't have to ask EVERY question the first time you see them, but when/if the conversation gets around to purchasing, then I want to know some specifics about their ability to buy my house before I agree to anything in writing.
Yes, I've turned down full price buyers because I wasn't convinced of their ability to carry through with the deal. A few months ago, I was selling a house and this particular buyer was practically begging me to sell it to him at full price, but he was tangled up with a double contingency on his house (his buyer was in a contingent contract also). I wanted no part of that mess. I told him that if/when his house sold and closed, if he still wanted my house and my house was still for sale, we could talk. Until then, I wasn't getting mixed up in his mess. A few days later I sold my house for CASH for only a tiny bit less than full asking price to a buyer who didn't need to sell anything before buying my place. Solid contracts and solid buyers is the name of the game. I'm not interested in taking on other people's problems.
We have probably 30 blanks in our contracts that are open to negotiation, closing dates, home warranty amounts, ect.
You have to look at the entirety plus the Buyer and their Agent qualifications to evaluate when you get multiple offers. That's why I never want to see a "Verbal".
When I sold, I chose based on most likely to close.
Typically, that's more money down, no house to sell, less contingencies, and/or no weird requests. The more straightforward and to the point, the better.
I got some offer letters meant to tug at the heartstrings, but their position was rather weak/iffy. In the end, I went with the sure deal.
Conventional over asking with at least 20% down and no contingencies/no closing help
Conventional at asking or above with at least 20% down and no contingencies or typical contingencies (appraisal, financing etc)
Beyond that we get into other factors like closing dates, whether or not this person has a house to sell, are they a first time buyer, what kind of EMD are they putting down, what kind of job do they have, are they an investor or going to live in the home, etc. It all depends on different factors and how many other offers we have if any. We do shy away from offers with low or no down-payments, federal loans, and closing help. In some markets, that's mostly what you get. It really depends.
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