Agent

Real estate not always secured with highest bid

Home sellers covet fewer contingencies, faster closings

Most sellers would be delighted to receive multiple offers. However, figuring out which offer to accept is not always as simple as you might think. Suppose you receive three offers. One is for $495,000: your asking price. Another is for $10,000 more. And the highest offer is for $525,000–$30,000 over the list price. If you look at price alone, you'd have no reservations about accepting the highest offer. However, there's more to consider about an offer than the price. The $495,000 offer might be from a preapproved buyer who has a $250,000 cash down payment and no appraisal contingency. This means that if the house appraises for less than the offer price, the buyer cannot use this to back out of the contract without risking losing his deposit. The lender should have no problem granting the buyer a mortgage for approximately 50 percent of the sale price, even if the appraisal comes in low. The more cash down, the more likely the lender will approve the loan. The highest-price ...

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