Seller Series Edition 3: Evaluating, Receiving & Negotiating Offers On Your Home

Thank you for following the Homes of Silicon  Valley ‘Seller Series’, a four-part edition  featuring our top tips for sellers this summer.  This sequence also marks the launch of our  weekly blog…so don’t be shy if you have a  topic or idea you’d love to read about right  here in the future!

Over the last two weeks, we have discussed ‘Creating A Comprehensive Needs Analysis’ and ‘7 Pricing Principles’. This week is what many homeowners would call ‘the fun part’ – receiving and accepting offers. It’s definitely one of the most rewarding parts of the listing journey – but also an extremely critical one. You may receive multiple offers…or maybe one or two. You may receive offers below, above or exactly on target with your asking price. Your highest offer may be contingent upon the sale of another home; your lowest offer may be all cash but a smooth close. These are all very good ‘problems’ to have, because you now have the opportunity to evaluate if your buyer is in this pool and who it could be!

We know you may be thinking this is the easy part…but contrary to popular belief - the highest offer is not always the best. Remember that time is money, and choosing the highest offer with the most complications could equate to anything from managing minor inconveniences to juggling costly deal breakers. Critical considerations include (but are certainly not limited to!):

- Financing type: cash, lender pre-approval vs. pre-qualification, contingent upon sale of existing home.

- Offer expiration date.

- Number of days for appraisal and finance contingencies.

- Total days needed to close.

- Terms and conditions related to the timeline and outcome of inspections, repairs, etc.

- Buyer’s motivation – often disclosed in a letter, video or even in price (serious buyers tend to make serious offers).

- Seller concessions – don’t make promises you won’t or can’t keep.

- Home warranty type, amount & provider if applicable.

It’s not unusual, and in many cases beneficial, to counteroffer and modify some or all of the terms of the purchase agreement. Don’t become so fearful of losing your buyer that you waver outside your comfort zone. In making the decision to list your home, you and your real estate agent likely devised a marketing, pricing, and negotiating strategy. Stick to it! You created that plan with clear and rational intentions to achieve an imperative and essential result. Avoid major deviations unless your situation has changed or the market has undergone a significant shift.

Evaluating and negotiating offers is often the point in a transaction where your agent’s experience, guidance and resourcefulness will stand out. Even the transactions that appear smoothest on the surface can (and will) change on a dime. Knowing your agent is committed to your best interests for better or for worse, in good times and in bad, will be the only means of survival in transaction crisis mode. (We believe the old adage about not being able to completely control your circumstances, but only your reactions, was probably rooted in real estate.)

While you can’t prepare for every ‘what-if’ in every offer you assess, you can identify the strongest components of each offer and trust your agent to weigh in heavily. Work together to note any red flags, potential complications or apparent inconsistencies as you plod through those purchase agreements. You aren’t just choosing your home’s next residents, but paving the path to your own prosperity and well-being.

The hard part is almost over, but don’t get out those glasses and prepare the toast just yet. Check back next week for ‘Seller Series Edition 4’ where we reveal ‘Closing Services: Where Coordination Counts.’

Warm regards,

Mark & Jason

team@homesofsv.com