You’ve done everything possible to prepare your home in Anderson for the market. You’ve decluttered, meticulously cleaned inside and out, touched up paint, and even tended to the hedges. The open house was a success, with numerous showings, and now you’ve received an offer that meets your expectations.
The work is over right? No. Here is why you should still show your home even if you have an offer.
Funding Might Not Come Through
One of the most common reasons for a home failing to close escrow is the borrower’s inability to secure funding. While there are numerous factors that can contribute to this outcome, as the seller, the result is the same: you’re back to square one.
To safeguard your interests, it’s crucial to only entertain offers from buyers who possess pre-approval. Pre-qualification letters may seem promising, but they offer only a rough estimate without a thorough examination of the buyer’s financial situation by a lender. However, even with pre-approval, there’s still potential for complications.
Surprisingly, seemingly innocuous actions such as applying for six-month no-interest financing at a furniture store can derail the final funding process. To mitigate uncertainty, it’s wise to continue showcasing your home and accepting backup offers until the loan funding is confirmed.
Inspection Periods are Free “Walk Away” Periods
Real estate agents often emphasize to buyers that the inspection contingency period provides them with the opportunity to withdraw from the deal for any reason. If the contingencies aren’t released, buyers aren’t even obligated to provide a reason. In some cases, buyers may have made offers on multiple homes and are conducting due diligence to make their final decision. Unfortunately, there’s little you can do to prevent them from backing out.
To protect yourself, it’s crucial to continue showcasing the property until buyers release their contingencies. If they withdraw from the deal afterward, you’re at least entitled to the earnest money as compensation. However, restarting the selling process from scratch with no momentum and an aging listing can be challenging.
Once these contingencies are lifted, typically around day 19 of escrow, your primary concerns shift to funding and appraisal approval.
Allows Greater Negotiation Power in Escrow
Throughout the escrow process, inspections serve to inform buyers about any defects or faults in the property. It’s a fact that every property, even brand new ones, may have issues highlighted in an inspection report. This is simply part of the inspector’s job. Fortunately, these issues rarely lead to a deal falling through. They often involve minor matters like a malfunctioning garbage disposal or dirty AC filters.
However, these issues do become negotiation points for the buyer, who may demand that you address them or provide a credit for the defects. If you’ve continued to show the property and have backup offers, you can adopt a stronger negotiation stance. Knowing that other potential buyers are interested means you don’t have to offer or accept as high a value in concessions. This can give you more leverage during negotiations.
This certainly boosts your confidence as the seller. You’re assured that your house will sell without having to compromise. While negotiation is still on the agenda, you’re now in the driver’s seat, dictating terms rather than scrambling to close the deal. The best part? You don’t have to handle the negotiations personally; that’s where your real estate agent’s cool-headed expertise comes into play. Your role is simply to state your position and let them handle the rest with their seasoned negotiation skills.
IF YOU ARE INTERESTED IN BUYING A NEW HOME IN Anderson, PLEASE CONTACT ME SO I CAN ASSIST YOU. I CAN BE REACHED AT (317) 537-7115 OR BY SIMPLY FILLING OUT THIS FORM.