Things to Consider When Evaluating an Offer Other Than Price
Walking away with as much money as possible in your pocket! This may be your first instinct while evaluating bids on the table. But, you should know that money is not the only thing to consider. In addition to price, evaluate these areas when vetting an offer.
The earnest money deposit (EMD)
If a buyer tries to back out of an offer for no good reason, the seller typically keeps the EMD. Thus, the higher the earnest money, the stronger the offer.
Contracts with fewer contingencies are more likely to reach closing in a timely fashion. The most common contingencies are home inspection, appraisal, financing, sale of the current home, and title.
The down payment
Generally, a larger down payment signals the buyer's financial wherewithal to complete the sale.
The all-cash offer
The more cash the buyer plunks down, the more likely the lender approves their loan. That’s why an all-cash offer is ideal for both parties.
The closing date
Typically, the whole process, from accepting an offer to closing, takes between 30 and 60 days. Whether you want a slow or quick settlement will depend on your circumstances. If you’ve already purchased your next home, for instance, you probably want to close as soon as possible. On the other hand, you may want a longer closing period, say, 60 days, if you need the proceeds from the sale to purchase your new home.