Special offer

Terms, earnest money and contingencies... oh my!

By
Real Estate Agent with Jameson Sotheby's International Realty

Many buyers, sellers and even agents concentrate solely on price.

Buyers want to know... "why did they accept that offer?  our offer was higher!?"

There are many things that go into an offer, other than price... and depending on the seller's motivation... price may be a lesser concern.

Sometimes, the seller has a need to close quickly... maybe they've been transferred, and perhaps they're already out of the house, and burning money each month while paying the holding costs of the home.

Perhaps they have a specific closing date that they want... in order to be home for the holidays one last time... or maybe so their child can start/finish in their preferred school.

Occasionally we find a seller who's been burned on a prior deal... and they're going to pay a lot of attention to the initial earnest money, or the loan details to make sure that the loan will be approved.

Some buyers will turn down a high paying offer, if the seller has a home to sell, and makes the deal contingent on that home's sale, or close.  I've seen sellers turn down tens of thousands of dollars because they were scared of that contingency.

There are lots of other considerations beyond price.

Posted by

 ALAN MAY, Realtor®   
Specializing in Evanston Real Estate and North Shore Real Estate

Jameson Sotheby's International Realty, 2934 Central Street, Evanston, IL 60201
Office: 847.869.7300      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

   

Comments(8)

Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Hi Alan May, That is very true a good clean offer for a lower price may be better than a higher offer with a lot of contingencies.

Nov 27, 2015 02:01 AM
Alan May

It's so true.

Nov 27, 2015 12:36 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Well said, Alan.  It is not always the highest priced offer that wins. There is so much more that sellers look at.

Nov 27, 2015 03:29 AM
Alan May

There is so much more.... so much more.

Nov 27, 2015 12:36 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The more cautious and tentative the seller, the harder the agent has to work to make sure the offer is good before it is offered to the seller for review and acceptance

Nov 27, 2015 11:59 AM
Alan May

well, that's certainly true.

Nov 27, 2015 12:38 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Yes, price is not the only consideration when selling a home...YOu make some great points

Nov 27, 2015 12:35 PM
Alan May

I try, William.  I try.

Nov 27, 2015 12:38 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Alan. If it were easy, everyone would be in the business! Enjoy your day!

Nov 27, 2015 08:07 PM
Alan May

What... it's not easy?

Nov 27, 2015 09:44 PM
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Colorado Broker / Referral Services

Yes Alan May , there will always be many factors for the right offer from the right buyer to work for all parties to the transaction.  Thanks for sharing your thoughts on some of those issues!

Nov 28, 2015 12:49 AM
Alan May

it was my pleasure, Dan. My pleasure.

Nov 28, 2015 02:30 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Wow!  No kidding on this one!  I'm amazed at how much cleaner offers have to be these days compared to back when I was a newbie.

Nov 28, 2015 07:52 AM
Alan May

you would think "no kidding", wouldn't you?

Nov 28, 2015 07:58 AM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Yep! All kinds of reasons for one offer to be selected over another. Contingencies are a major concern, but it could be anything that tilts the scales in favor of one buyer over another.

Dec 03, 2015 07:15 AM
Alan May

so many reasons, other than money.

Dec 03, 2015 07:34 AM