Special offer
Home > Blogs > Nicole Doty - Gilbert Real Estate Expert > Nicole Doty's Zion Realty Blog
bookmark_border

Should I take the highest offer for my home?

By
Real Estate Broker/Owner with Zion Realty

So you've gotten all of your to-do list items completed and placed your Gilbert, Arizona home for sale on the market with Zion Realty. You've had several people walk through your home and show interest in making an offer. Well, what happens when the offers finally start coming in? Shouldn't this decision be easy? Isn't the highest offer always the best offer to take? The short answer is No, the most money being offered for your home isn't always the offer you should choose. There are many factors that come into play when choosing the right offer for your home:

1. What type of loan does the buyer have?  Is the buyer using a Conventional loan, a VA loan, or an FHA loan? Is the buyer offering cash to purchase your home? Every loan has stipulations, restrictions, and sometimes required contributions by the seller.

2. How much is the buyer asking you to contribute? If the buyer is using any type of financing, chances are they are going to ask you to contribute money towards their closing costs and loan fees. How much of your profit margin are you willing to give up to the seller to help them buy your home?

3. Are there any contingencies? Is the buyers purchase of your home dependent upon other circumstances. For example, do they themselves have a home on the market that needs to sell first before they can move forward with the purchase of your home? Are they an out-of-state buyer and their offer is contingent upon the finalization of a job transfer?

4. What is the requested Close of Escrow? Are you in a hurry to move? Is time a factor in your decision to sell your home? All things considered, the time it takes to close a real estate transaction can vary from 4-6 weeks or perhaps a little longer if you hit a few bumps along the way. What time frame is the buyer stating they are able to complete the purchase transaction? Are they asking for a Close of Escrow date that is 60 days away? 90 days away? Make sure you can live with the allotted amount of time the buyer is requesting you give them to close on the purchase of your home. 

These and many other factors play an important part of accepting the right offer for your home. Zion Realty will help you make the right decision for you and your family when it comes to selling your home here in Gilbert, Arizona. Contact us today at ZionRealtyAZ.com for a free home evaluation and market analysis.

Comments(25)

Subscribe to Comments Comment
Submit
Show All Comments
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

The highest isn't always the best.....you've done an excellent job pointing out the reasons why this is true.

Jan 13, 2015 03:11 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Nicole, there are so many options and scenarios. Cash offer is not always the BEST offer and seller contribution isn't a bad thing! I am working with one now, we have two offers which were received this morning, 3 more showings scheduled today and another offer on it's way!

Jan 13, 2015 04:53 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Alexandra - Have a great day as well! Thanks for stopping by!

Tom - When you break down all the numbers for the sellers they quickly see that the highest offer doesn't always put as much money in their pocket.

Kathy - Yes! First time sellers have only been on the buy side of things so now that the shoe is on the other foot it's a different experience!

Raymond - I can't even begin to comprehend that equation!

Jon - Exactly! Sellers even need to make sure the buyers mortgage company is of high reputation for being able to close on their loans!

Roger - Buyers often times try and flash the big number up front to the seller hoping to distract them when they know the other terms they are offering aren't the best. 

Beth - In my market it's the cash buyers that are the lowest offers by far! They think cash is always king so people are just supposed to give their house away to them. That's great your sellers are getting so much action on their house! Good for them and good for you!

Jan 13, 2015 05:46 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

GREAT points because the highest offer is not always the best. I am sorting through a half dozen offers now on my new bank listing and the highest offer of cash has hidden in the comments on the last page a rebate of 10k towards buyers closing costs and a sentence saying the buyer reserves the right to get a mortgage, So the cash offer is not really cash.

Jan 13, 2015 05:55 AM
Yolanda Cordova-Gilbert
Richmond, TX

Nicole,

 So true the highest offer is not always the best offer, some people do not understand this! I remember reading in the rain that someone wrote a note to the seller about the home and that is what won them over.

Jan 13, 2015 06:19 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

The offer price is never the bottom line.  I have had Sellers that didn't want to pay closing costs for the buyer's at all, so I have had to convince them that if the bottom line is a number they like, then they should accept the offer.

Jan 13, 2015 07:19 AM
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Nicole Doty - Gilbert Real Estate Expert ....I tell people all the time that the highest offer may not be the best ....you have to look at it all before deciding!

Great post!

Jan 13, 2015 07:54 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Very nice post Nicole with a lot of wisdom and helpful tips about what one offer gets chosen over another of a higher value.

Jan 13, 2015 09:08 AM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Good post Nicole. I have seen people chase the money and end up in a loss as the BEST deal didnt pan out and the others went and bought elsewhere

Jan 13, 2015 10:57 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Many sellers have found that the highest netting offer is not the best offer.  It really depends on the client and what is most important to them in the process.

Jan 13, 2015 11:08 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Scott - You've got to love all the extra hidden requests that buyers try and tuck in to contracts!

Yolanda - I had a buyer last year have their offer accepted because of the letter they wrote to the seller.

Brian - Everything is negotiable but the sellers have to know what the overall "final" price is that they are comfortable with getting.

Rob - It's the flashiest part of the contract but also can be the most deceiving until you read the rest of the requests.

Evelyn - Thanks so much for stopping by Evelyn! I hope you're having a great night!

David - Once I break down the math for most people they will usually make the right decision on what offer to accept. There are occasions when they exchange less money for a quicker close date, or perhaps the buyer is willing to buy the property in "as-is" condition. 

Jan 13, 2015 11:11 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Chris - Exactly. Every seller is different and they will choose which offer works best for them. That doesn't always equal the most money in their pocket either.

Jan 13, 2015 11:12 AM
James Dray
Fathom Realty - Bentonville, AR

When looking at all the facts in the offer a lower offer may be the one to go with.  It just all depends like you said.  

Jan 13, 2015 06:40 PM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Nicole Doty,  Great blog, you know your stuff and people should take your advice.  Keep up the great work!

Jan 13, 2015 10:29 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I had to literally do the math once to show a buyer how a cash buyer closing quickly would actually net them more money in saved interest and insurance refunds and less prorated taxes.  You are certainly right, terms and conditions mean so much.

Jan 13, 2015 10:33 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

James - Sometimes it isn't just about the money either. You've got to help the seller weigh all the terms they are being presented.

Will - Thanks for stopping by Will. I'm glad to see you're doing ok after that Broncos loss. 

Tammy - The numbers don't lie. Sometimes we have to literally spell it out for our sellers. 

Jan 13, 2015 10:43 PM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

And some people just want a really nice family to take over the home they loved for so many years.

Jan 14, 2015 09:22 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Nicole ... great post, great list and the highest offer isn't always the best 

Jan 14, 2015 11:03 AM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Nicole.  Terms are as important as the price.

Jan 14, 2015 09:32 PM
Mike Tizzano
Amerifirst Financial, Inc Equal Housing Oppurtinity Lender AZ BK0013635 NMLS 145368 LO:1015837 - Mesa, AZ
Protect Your Transaction Certified Lender

This is the main reason our company developed PYT, to strenghten the buyer's offer.  It's our assurance that we qualified the borrower on credit and verified that they are qualified, backed up by a $10,000 assurance that if we don't perform we'll pay the borrower $10k, which they can assign all or part of to the seller for additional earnest money.

Jan 15, 2015 04:50 AM
Back to Top

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?