All About Evaluating an Offer in Pleasanton
0:05: Hello, and welcome to 680 Home Video Channel. A web series where we answer all of your Real Estate questions. I’m your host Theodora, and I’m talking to local East Bay Real Estate broker, Doug Buenz. Hi, Doug, it’s great to see you!
0:44: Today, we are discussing “Evaluating an Offer”. Doug, as a seller, what considerations are important when evaluating an offer?
0:53: Well, I would say- first of all, throw off the bat. If you have an offer, congratulations! It can be a rare commodity depending on the area. But there are several factors in terms of evaluating an offer. And certainly, the primary one is price. Is it a price that you can work with as a seller? Not always easier price you can always work with, you may count an offer, go back and forth a little bit.
0:24: But keep in mind, prices are a reflection of relative market value at that time in the market. You have to take any consideration activity in your price range, competition from builders, distressed sales for closures, and short sales, etc. So, given all those factors, you have to be careful not to insist on a price that’s not within the range at that time.
1:51: Assuming the price works for you, there’s other considerations that are very important, as well, in terms of considering the relative strength of an offer. One of them would be the strength from the buyer. Certainly, if it’s 100% percent financing transaction, what the guy’s pledging is his 1972 ski boat as the down payment that may not be such a good offer. Conversely, if the buyer’s putting a nice healthy 3% deposit down, it has a healthy down payment, and a pre-approval letter, that’s probably a pretty good buyer.
2:25: It’s important to have a buyer who can be able to close the escrow. That is a very important part of the process. You want to make sure, you’re dealing with the party who can actually close the escrow. Probability of close obviously is important. If it’s a contingent sale that takes away from the probability of close, you have to take a careful look at the contingencies.
2:43: If it’s contingent on a sale in the home, see where the home is located and what the probability that home closing is. If it’s what’s the profile of the buyer in terms of probability of closing. If you have a property that is a fixer-upper, and you’re selling it to a contractor, probably a pretty good chance it’s gonna close escrow.
3:09: But if you a property that has a deffered maintenance and have some repair issues, and you are selling it for instance to a single mom- might be a little low in probability. Because she probably doesn’t have the resources, knowledge, or experience to deal with a lot of issues. Understand who the buyer is you’re selling the property to.
3:28: Lastly, look at timing. Timing is an important part of evaluating an offer. If you need to be across country in two weeks, or you need a quick close of escrow because you are purchasing another home, then the buyer needs to match that in terms of profile. They need to have the ability to close quickly. If it’s someone who insist on a 90 or a hundred and twenty day close of escrow because their funds are tied up and T-bills or Bear Stearns merging market fund, might not be a good fit for you.
4:00: You certainly need to look at timing as well. All of these things are factors. But at the end of the day, it’s really what’s important to you, the seller, that will determine how buyable the offer is, and whether it’s something you can work with.
4:20: If you have Real Estate questions, or needs assistance, I do hope you’ll give me a call. I’m worthy of your trust!