If a listing is highly desirable or situated in a buyers’ market, your sellers may receive multiple offers at once. While this can be great news, getting several contracts at once can be confusing and overwhelming for your clients. In some cases for sellers, comparing contracts can seem like comparing apples and oranges. Which contract should they accept? Your experience and knowledge can help them decide.
Homes are big investments, and it’s understandable that your sellers want to get the highest sales price they can. Contracts that offer the asking price or above should always receive close consideration and priority. Although the contract offer price is certainly important, it shouldn’t always be the only consideration for sellers.
Contract timelines can be as important as the sales price in some situations. It’s important to consider whether escrow times, closing timelines, and possession dates line up with your sellers’ plans. In some cases, shorter escrows are desirable for sellers while in other situations, a longer escrow can be more beneficial. If sellers have to incur hotel or leasing costs to make a contract work, these expenses may offset some of the profits made from the sale.
Contracts from buyers who present mortgage pre-approval certification may be attractive because your sellers won’t have to worry as much about financing potentially falling through.
Offers that don’t require a mortgage can be appealing for many reasons. Cash buyers may be able to close faster, which can be advantageous for some sellers. In addition, an appraisal of the property may not be required by the buyer or may not carry as much weight since it won’t be needed for loan approval. Cash offers are often thought of as being less risky and more likely to get to the closing table since they aren’t dependent on financing. In addition, cash buyers can save on many closing costs which may put them in a position to offer a better sales price.
The types of contingencies included in real estate contracts can have significant implications for sellers. If a contract is contingent upon the sale of other real estate, a seller could be left waiting for the buyer to market, negotiate, and close on a property. Home sales can also be contingent on the buyer obtaining financing as well as the results of a home, termite, radon, water, and other types of inspections.
Contracts that include home warranty coverage can be especially attractive to sellers for many reasons. For example, HSA home warranty coverage can help boost buyer confidence by protecting their household budgets after closing from covered home system and appliance component breakdowns. If the condition of home systems and appliances are in question, or if buyers are stretching to afford a property, the coverage and reassurance that an HSA home warranty provides can be particularly crucial. HSA home warranties can also help protect sellers’ equity investments during the listing period and may help protect the seller from out-of-pocket expenses for covered repairs or replacements while the home is on the market. For more information about how to include HSA home warranties in real estate contracts, contact your HSA Account Manager or visit onlinehsa.com today.