A seller’s market occurs when there are more buyers than sellers. When you are selling in this type of market, you will probably end up with multiple offers on your home.
It can be tricky to decide which offer to take because the highest one is not always the best. According to Trulia, you want to consider a range of things when making your final decision to accept an offer on your home.
Cash vs. financing
If you get a cash offer, it is usually the most stable offer you will receive. Buyers paying cash have the money on hand and will not have to worry about financing issues. Buyers who have to go through a lender are subject to a range of conditions and may have the financing fall through at the last minute. The downside to a cash buyer is they usually will not offer the highest price.
Type of loan
Conventional home loans are the best to get because they will not have a lot of hoops you and the buyer must jump through. Government loans, such as FHA or USDA, have many requirements. They can become complicated and even cost you money in the end due to having to meet the requirements.
Some buyers will want you to cover closing costs, which will take away from the money you get out of the sale. You may want to look for buyers who do not make this type of request.
Some offers may have contingencies. These are things that must happen for the deal to go through. An offer with a lot of contingencies could be much risker to accept than one with fewer or no contingencies.
It is important when deciding which offer to take that you look beyond the money amount and to the details of the offer.