Factors to Consider Before You Reject an Offer to Purchase

If you receive a “lowball” offer to purchase your house, your first reaction may be to respond with an immediate “No.” However, it is important to evaluate any offer to purchase your house closely. Because if you weigh the pros and cons of rejecting an offer to purchase your home, you’ll be better equipped than ever before to make an informed decision about any homebuying proposal you receive.

Now, let’s take a look at three factors to consider before you reject an offer to purchase your residence.

1. Your Home’s Price

What you may consider to be a lowball offer to purchase your home may actually be a competitive homebuying proposal – it all depends on the current state of the housing market. Thus, if you analyze the housing market, you can find out how your home’s price stacks up against the prices of comparable houses and review an offer to purchase accordingly.

If you find your home’s price falls in line with similar houses in your city or town, you likely have a competitive initial asking price in place. And if a buyer’s offer to purchase your home falls short of your house’s initial asking price, you may want to decline the proposal.

On the other hand, if your home is priced much higher than comparable residences in your area, you may want to adjust your home selling expectations. In this instance, you may find a lowball offer to purchase turns out to be a competitive homebuying proposal. As a result, you may be more inclined to accept the proposal based on the current housing market’s conditions.

2. Your Home’s Condition

Oftentimes, buyers will account for potential home repairs or upgrades they will need to complete if they acquire a house. This means a buyer may submit an offer to purchase below a seller’s initial asking price due to the fact that a house may require assorted repairs or upgrades in the near future.

Take a look at the condition of your home – you’ll be glad you did. If you find your home is in need of significant repairs or upgrades, you may want to consider these projects before you reject a buyer’s offer to purchase your house.

3. Your Home Selling Goals

It generally is a good idea to start the home selling journey with goals in hand. That way, if an offer to purchase your house allows you to achieve your home selling goals, you can accept the proposal. Or, if an offer to purchase your house moves you further away from accomplishing your home selling goals, you can reject the proposal.

As you get set to complete the home selling journey, you may want to hire a real estate agent too. This housing market professional can help you assess any offers to purchase your house, at any time. By doing so, a real estate agent can help you determine how to proceed with an offer to purchase and ensure you can make the best-possible decision.

Signs You Likely Will Receive an Offer to Purchase Soon

As a home seller, it is important to do everything possible to generate interest in your residence. That way, it won’t take long to start receiving offers to purchase after you list your home.

There are many signs that homebuyers may soon submit offers to purchase your residence, and these signs include:

1. Buyers are setting up home showings.

Even a single home showing is a positive sign for a home seller. And if you find that buyers are submitting regular requests to view your residence, it may be only a matter of time before you receive many offers to purchase your house.

Typically, it helps to be flexible when you sell your house. If you make it simple for buyers to view your house at their convenience, you may increase the likelihood that the right buyer will check out your home and submit an offer to buy it.

2. The same buyers have viewed your house multiple times.

An interested homebuyer may request to view your house more than once. In this instance, you may receive an offer to purchase from this buyer sooner rather than later.

As always, it pays to accommodate as many home showing requests as possible. If you make it easy for a buyer to view your residence multiple times, you can help him or her make an informed decision about whether to submit an offer to purchase your home.

3. Buyers have lots of questions about your house.

A home showing gives property buyers an opportunity to check out your house in-person. It also may lead these buyers to reach out to you for additional information about your home.

Remember, you should be ready to provide homebuyers with as much information as you can about your residence. If you offer homebuyers the information they request, you can help them determine whether your house is the right choice based on their individual needs.

For home sellers who want to go above and beyond the call of duty to stir up interest in a house, it may be beneficial to hire a real estate agent. In fact, a real estate agent will help a seller navigate the property selling journey and achieve the optimal results.

First, a real estate agent will meet with a house seller and set the stage for a successful property selling experience. He or she will offer insights into the local housing market and help a seller establish a competitive price for a residence. Then, a real estate agent will schedule house showings and open house events. And if a seller receives an offer to purchase, a real estate agent can recommend whether this individual should accept, decline or counter the proposal.

Want to streamline the house selling journey? Work with a real estate agent – you’ll be happy you did. If you employ a real estate agent, you can get the help you need to showcase your residence to potential buyers and maximize your house sale earnings.

What Is A Backup Offer?

When you find a home you love, you most likely will want to take the steps you can to buy it. When a home is already under contract, there’s actually a little-known strategy that can be used to help you have a chance at getting the property. 

When you make a backup offer, you’re doing all of the same things you’d do under normal circumstances. The only difference between a normal offer and a backup offer is that you’re not guaranteed to get the home. The first deal needs to fall through in order for you to have a shot.

Advantages To Backup Offers

The backup offer is a bit of a stretch, but it still does give you a little bit of a chance to get a home. When a backup offer is in place, the home won’t just go back on the market if something falls through. This is especially smart when it comes to lower inventory markets. When a home is re-listed, you’ll need to compete against other buyers. If a bidding war is initiated, the home’s price will keep going up. The backup offer being in place helps the seller to feel secure in the sale of their home one way or another. If for any reason the first buyer falls through, you’ll be able to swoop in and get the home yourself.

Timing Is Everything

Keep in mind that there’s a certain period of time before a deal needs to be closed on for a home. The original buyer will need to close the deal on the home in an average of 50 days. Knowing the time frame that you’ll need to wait around for a decision is helpful for you in your own search for a home.

You can also have your agent check in with the listing agent for the property on a frequent basis. This lets the agent ad seller know that you have a keen interest in the property in case there are any difficulties coming from the other side of the deal. 

If The First Deal Doesn’t Go Through

If the first deal on a home does fall through, you’re not the new owner of the home just yet. There’s always a possibility that the first buyers found some very difficult problems with the home during the inspection. These could be big issues like an issue with the roof or the foundation of the home. Be sure to include a home inspection contingency with your contract so that you can have your own inspection conducted. This way, you’ll know if there are any problems with the home and that you will be able to deal with them.

A backup offer can be a great tool to use in tight markets to help you get a home that you love. It’s always a good idea to proceed with caution in any home deal to make a sound financial decision.