In a competing offer situation where more than one buyer is vying for your property, it’s easy to focus on the price. Which one is highest? But price alone doesn’t tell the whole story.
Are there subject conditions? If so, what are they and how long are they? For instance, a vastly higher price may be attractive on the surface but what if the buyer needs to sell their home? Even worse, what if their house is not even on the market and unlikely to be so for several weeks? A lower offer unencumbered by conditions offers a far greater degree of certainty.
Does the high offer have a Whim and Fancy clause? Those are conditions which make the situation unpredictable, such as Subject to Viewing or Subject to parent approval. Neither you nor the buyer have any control over the outcome.
If both buyers require a financing condition, which is the more safe bet? Here’s where the seller’s agent discusses with both buyer agents where their buyers are at in the cycle of pre-approval. Is the seller’s agent familiar with the mortgage broker/banker? Does the buyer’s agent have a reputation of working only with fully qualified buyers? This is where professional relationships are helpful, especially in a small community like Victoria.
Closing dates, inclusions and exclusions, deposit amount and terms are other factors which need to be considered in addition to price. Making the best choice is often not as clear as it appears.
Listen to The Whole Home Show with Tony Joe Saturdays 12 noon on CFAX1070.com