Not necessarily. Together we will look at the terms of the offers, such as contingencies, which represent different layers of risk. For example, these are a few items to consider:
Is the buyer qualified? Show me the money! If the purchase is being financed I’ll confirm that credit reports, assets, downpayment, etc. have been verified with their lender. For cash sales I confirm they have the assets to complete the sale.
What is the settlement date? A closing date that aligns with your plans is best. Typically, shorter settlement dates are preferable leaving less chances for things to go wrong at the last minute.
What’s the amount of the earnest money deposit? This shows the buyer is “earnest” or serious. 3-5% of the offer price is typical. The larger the sum the more “skin in the game” the buyer has (and does not want to lose) when negotiations begin.
Are there inspections? Inspections (like structural, radon, septic, etc.) essentially take the property off the market—5-10 days is typical—so the shorter that period the better for you. An 'As-Is with Right to Terminate' offer still has inspections (usually for the buyer’s knowledge of the property) but the seller makes no repairs. There is also an 'As-Is with No Inspections' which is obviously the most desirable!
Is there a home to sell? Sometimes, but not always, this can be a bit risky even if the offer price is higher. The buyer’s home needs to be evaluated in context of the current market. Is it listed? Properly priced? Under contract?
In general the offer that minimizes these layers of risk, among others, is the best choice for you and is more likely to close on time. The last thing we want is for the deal to fall out at the 11th hour!
Every transaction is different and there are no hard and fast rules. Being strategic in helping my clients choose the best offer (or write a winning offer) is one of my strong suits.
