Evaluating the Offer

People work tirelessly to generate interest in a home they are trying to sell. Once they get an offer, however, they often are not sure how to evaluate it. You have read every book under the sun. You have read more internet articles than you can imagine. You have cleaned up your home, made repairs and put out your marketing. At this point, you feel like you are an expert in the process. Suddenly, you get an offer on the property. Now what? The first thing to do is relax. Do not make the mistake of rushing to evaluate it. An offer is just that – an offer. It has contingencies and all kinds of little quirks in it. Although you have lived in the home for a lengthy period of time, you need to realize you are now in a business transaction. Once you have caught your breath, it is time to consider the offer. The first issue is always the offered purchase price. Often the price will not be what you are asking for in the listing. It may be below the number, perhaps surprisingly lower. At this point, you may feel the urge to pick up the phone and give the buyer a piece of your mind. Don’t! This is a business transaction. The buyer may simply be testing the waters to see where you stand. If they get a yes, they get a great deal. If not, they will evaluate any counter offer you make. If you do not counter, they can always submit a higher offer. Remember, this is a business transaction, not an affront to your pride! A second issue concerns items in the home the buyer may want included in the sale. I have seen heated arguments break out over a single lamp. Maybe that lamp is an heirloom that you can’t part with, but it probably is not. Only you can decide how valuable it is and whether it is worth losing the sale, but try to be objective and clear-headed when making the decision. Yes, it has been a loyal lamp, but really now… After this, you need to evaluate any additional costs associated with the offer. The buyer may want allowances for painting and so on. It is usually fairly easy to bypass your emotions on this one, but you need to make some basic financial calculations. Take the offered price and subtract all costs for the transaction. Once you have the net figure, compare it to the bottom line number you decided on when you first decided to sell. This will help tell you if it is an offer you should accept, counter, or decline. Homeowners often get so focused on the selling process that they are caught off guard when an offer actually rolls in. Knowing your bottom line ahead of time makes that moment much calmer.

Every offer is really a starting point for a conversation. If you have an offer in hand, or expect one soon, and want a calm second set of eyes on the numbers and terms, I’m happy to help you weigh your options with no pressure. Reach out through reynoldsrealty.com or call/text 941-737-6562. — Linda Reynolds, Reynolds Realty Gulf Coast