Which Offer Should I Take?

You've made the decision to sell, put your home on the market, and if you've price wisely, you may have multiple offers. Now that the real estate market here in Southern California has gone up a bit, you may find yourself in this position.

​While the knee jerk reaction is to take the offer with the highest dollar amount, the highest offer may  not always the best.  

• Who's Your Buyer?: Buyers should always have a lender pre approval letter with their offer, but not all pre approvals are created equal.  Make sure to ask your agent whether the buyers' assets and income have been properly verified, and that they have enough cash on hand for down payment and closing costs.  A buyer that writes a good offer on paper may not make it to closing. Your agent should have a conversation with the buyer's lender to get a feel of how well they look financially and confirm that they can really afford to buyer your home.

• Good Agent / Bad Agent:  A bad agent can cause an otherwise good deal to go south.  A real estate transaction is a dance between the seller and buyer, and if both parties work together in the spirit of friendly competition, it can be a wonderful thing.  I've had a couple of nightmare transactions, and an agent who unnecessarily goads their client into a combative state can make a sale pure hell for everyone.  "We want this or we'll walk," is NOT the way to negotiate.  If the agent on the other side doesn't present an offer with respect and basic good manners, I tell my sellers to think twice.

• Cash Is King (Or Is It?): With inventory at low levels throughout Southern California, investors have been looking for property to scoop up.  The investor buyer will offer cash and a quick close, but will definitely be looking for a deal.  If you are in need a fast sale and time is of the essence (in case of a pending foreclosure sale date, for example), the cash offer may be what you need.  Most cash buyers can close in 5-7 days, so the money from your sale will be available quickly. Of course there will be considerably less of it, due to the circumstances.

Food for thought...

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