Low man on the Totem pole

Real Estate Broker/Owner with FITZGERALD Real Estate 9500521

When a property seller receives multiple offers, the offer price isn't always the deciding factor. One may think that they will automatically choose the one with the highest offer price. However, the terms could and should affect their decision, especially in this current market where some sale prices are coming in well over the list price.

Because in any offer, there are conditions, contingencies that, if not acceptable or unable to be met, the transaction could be terminated and not make it closing. A home inspection is one contingency that most buyers will choose to include. It is the funding piece that has the most variables. Depending on what type of financing a buyer needs depends on how many steps it will require for loan approval and how many times it could run the chance of not getting their loan approved.

The pecking order most likely to close is cash. Cash transactions usually will trump any financeable offer because there is no other contingency besides the inspection, no appraisal needed. Those with 20% down payment and above, next, because they don't require PMI Private Mortgage insurance. Then Conventional loan with PMI.

Lastly, there are the government-insured loans, USDA, FHA, VA. These loans require an added layer of approval that also requires the house to meet specific condition standards. One way a buyer could address this, if able, is to be willing to agree to take on, pay for any items or issues required to get the loan approved. Doing this can give the seller reassurance they will not have to address issues otherwise not needed or required in a conventional type of loan.

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FITZGERALD Real Estate  

Corinne A Fitzgerald
116 Federal Street
Greenfield, MA 01301
413-320-9509  cell/text
413-376-4433 direct office line

 2015 President - Massachusetts Association REALTORS®
         2012 President – REALTOR® Association of the Pioneer Valley

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