Selling your home can be an exciting, overwhelming and stressful experience all at the same time, especially in a hot housing market like DC. When inventory is low, it’s common to get multiple offers and sometimes, offers can get quite competitive, with bidders topping each other at a rapid rate. Whatever your particular circumstance, you have to choose the offer that works best for you, which doesn’t always mean the highest bidder.
THE VALUE OF YOUR HOME
When listing your home, odds are you are looking to make as much money as possible from the sale, so a high offer is naturally exciting. That said, one potential issue is if the buyer needs to obtain a loan to purchase your home and your home is appraised for less than the purchase price, then the lender can reduce the size of the Washington D. C. real estate loan extended to the purchaser. This often re-opens negotiations around the purchase price and could result in the dissolution of the contract or selling your home for a lower price. In this case, it may be in your best interest to accept an offer that is more consistent with the true value of your home rather than the highest offer.
Another appealing offer is a cash deal, which enables you to skip all the steps required when the buyer is paying with borrowed funds. Cash deals close much faster and there is no need to worry about an appraisal derailing the buyer’s ability to obtain a loan, as outlined above. Given the foregoing, a cash offer may be ideal over a contract contingent on the buyer obtaining financing, even if the cash offer is slightly lower.
The fewer the number of contingencies in a real estate contract the better, so carefully consider the contingencies that may frustrate the sale of your Washington D.C. real estate home. Buyers may require that your home appraise for a certain amount or that they be approved for a loan or that the house pass inspection. The buyer may also need to sell heir current residence before they can afford to buy your home. The aforementioned contingencies -- as well as others -- can lead to a longer and more challenging selling process, and perhaps the dissolution of the transaction altogether.
In all of these cases it is key to have a trusted Washington D.C. real estate agent diligencing all offers and informing the seller of any advantages, disadvantages, contingencies or other potential risks throughout the process. If you are looking to sell your home in DC, contact David Hatef, one of the top real estate agents in DC.