As a homeowner, you’ve decided to sell your house. There are many methods. You can sell through realtors or by For Sale By Owners(FSBO) method. FSBO offers many advantages like savings on commission, transparency, and speed.
The highest offer is of course the one that quotes the highest prices for your house. But is it always the best offer. Not necessarily.
It takes some practice to negotiate the highest and best territory and notice potential red flags. You may be wondering how to sell a house by owner? If you go forward with the wrong offer your deal may not reach completion, and you end up wasting time.
Factors affecting the quality of offers
Let us first understand what are the factors that determine the quality of offers? You must first prepare your home for sale. The following factors play an important role in the number of offers received for your home. One of the most important aspects is to List on MLS.
At the outset, a lot will depend on whether it is the buyer’s market or seller’s market. If it is the buyer’s market then you may not receive too many offers. That will leave you with very few choices.
If it is a seller’s market then you will receive plenty of offers.
Your pricing will also determine the number of offers received by you. You are likely to receive fewer offers if your house is highly-priced as compared to others in your neighborhood.
3. The condition of your house
A well-maintained home will attract more buyers compared to a dilapidated house. Houses with more outdoor areas and facilities like a basement and swimming pool will be more attractive to buyers.
Let’s say that you have ticked all the right boxes. Your pricing is right, there is high demand and your house is well maintained. You receive multiple offers. But what next?
Demanding the highest and best offer
Putting forth a demand for the highest and best offer is also a matter of timing. Wait till you receive numerous offers. A buyer will make an initial offer. The initial offer need not be the final offer. There will be counter offers and negotiations. All this takes up time.
Negotiating with individual buyers can lead to a waste of time. The most tried and tested way to avoid this is to put a deadline to receive offers.
This strategy puts a sense of urgency on your offer. The buyers get the message that theirs is not the only offer. The buyer may be prompted to polish their offer or raise their offer. Sites like Houzeo.com have a special feature that makes it easy to counter and request offers from buyers.
When the highest is not the best.
It is easy to notice the highest offer among multiple bids. It is the fine print that decides whether the highest offer is also the best. Too many contingency clauses can negate the benefits offered by high prices.
The highest and best are actually two different parts. In order to qualify as the highest offer, buyers raise their prices. Factors like earnest money deposit, closing date, and contingency clauses make the offer the best.
Factors that make or break a contract
There can be plenty of clauses in the contract that can delay the deal or even break it. Some of them are:
1. Earnest money deposit
The earnest money offered can convey the buyer’s intent to purchase a home. It also prevents a buyer from reneging on the contract for any flimsy reason not mentioned in the contract.
2. Contingency clause
There can be numerous contingency clauses in a contract. Some of them are:
Most buyers insist on this clause for their safety. During the inspection stage which lasts for 7-10 days, the deal can be called off. A prior home inspection before putting the home for sale can give the buyers more confidence.
This clause is very important for buyers who have to avail of a loan for a home purchase. This contingency can be negotiated. The buyer may avoid this clause in a seller’s market to make his offer more attractive.
This is a very risky clause as it can derail the deal for no fault of the seller. In a seller’s market, the buyer can be persuaded to waive this clause as part of their counteroffer.
Home Sale clause
This is another risky clause chosen by buyers who want to sell their current house before they buy a new one. Most sellers won’t agree to have this clause in their contract.
3. Closing time
Most home sellers will like to make the sale as early as possible. If you want to move out of your home quickly then the offer with the shortest closing time will be ideal for you.
Ideally, most buyers will prefer a contract with few contingencies. Market conditions will dictate your bargaining power. A seller’s market will allow you to negotiate an offer with fewer contingencies.
Your best bet is always an all-cash deal provided you can verify the source of funds.
The Houzeo.com Advantage while calling for the highest and best offers
Houzeo.com makes it easy for you to keep track of all your offers. You are notified the moment you receive a new offer. You can view all the offers anytime from the comfort of your home. Houzeo.com offers packages that contain offer contract reviews and counter offers. You can also enlist the help of experts to assess the offers received. You can learn more about them on Houzeo Reviews.
You can send requests for the highest and best offers to all people who have shown an interest in your property. You can also set the deadline for the highest and best offers. Houzeo.com formats your emails regarding the highest and best offers.
Houzeo.com is the most reliable and transparent method for FSBO. It is designed to help you in every step of home sale by owner. From listing to closing the deal houzeo.com has it all covered in easy steps.