- Closing Date - This date the buyer is proposing that they will be able to take ownership of your home. If you have another home that you are trying to purchase or if you need to be out of your house by a certain date, then date could be key.
- Due Diligence period - This is the number of days that the buyer wants to have to do all of their inspections. From a seller's point of view, they would like this number to be as a low as possible as the buyer can pull out during this time with no penalty. For the seller this means that the property will have been off the market for this time.
- Earnest Money - This is a show of good faith by the buyer and shows their intent to purchase the home. The higher this amount the more keen the buyer will appear to be as this. After the due diligence period is over, the buyer will lose their earnest money to the seller unless the seller does not have title, the buyer cannot get financing during the financing contingency period or the house does not appraise for the agreed sales price during the contingency period.
- Payment method - This is how the buyer is purchasing the property. The main payment methods are cash, conventional loan, VA loan, or FHA loan. As they say "cash is king" since this payment method reduces the risk of the sale not going through due to lack of financing. However, the seller must remember to get proof of funds.
As a seller you will need to weigh each of these factors and decide which ones are the most important to you. Would you be willing to accept a lower sales price if the buyer is a cash buyer and can close in 14 days?
These same elements are important for a buyer to consider when putting an offer together since you always want to make the best offer possible, especially when housing inventory is low and multiple people are bidding on the same property.