How To Choose The Best Offer

Prices are lower this summer, but multiple offers still happen in Durham Region every day and that’s the best position to be in for a seller. Having a choice in offers allows for a choice of price, terms, and closing date. When presented with more than one offer, sometimes it may be difficult to choose. Even if the offers are close and there is a seemingly clear winner, the highest offer may not always be the best offer.

Here are points to consider when making a decision:

Financial Health of The Buyer

An excellent offer price doesn’t mean much if the buyer can’t come up with that amount on closing. A strong deposit in addition to a cash offer or a verified recent mortgage pre-approval will make the offer more appealing.

Terms of The Offer

Typically the cleaner the offer the better and the less hassle for the seller. However a firm offer may not be the best one either, even more so in the kind of market we are in today. Mortgage rates are changing, which means buyer approvals are changing as well and it is recommended to ask questions regarding the buyer’s financial health when considering firm offers. That also includes whether or not the buyer has a property that they need to sell to finance the purchase. If they do, is the property already on the market? If not, what is the buyer’s plan for listing it? We are in a changing market and if the buyer waits with their sale, they may not net as much as they are hoping for, which could complicate and/or delay their purchase at closing.

Closing Date

It’s perfect when the buyer and seller closing dates align, but it may not always be the case. Consider any costs of bridging a mortgage or carrying the property longer than expected, and costs of temporary accommodations if the closing is earlier than expected. Some offers may include a clause that will allow the buyer and seller to adjust the closing date with proper notice and if both parties are in agreement.

When choosing an offer, asking the right questions of the buyer’s agent will shed more light on all 3 points above.