The Highest Priced Offer Isn’t Always The Best Offer
The highest priced offer isn’t always the best offer.
“My offer was the highest price offer, Why didn’t it get accepted!?” This question surfaces allot while working with home buyers in Massachusetts. On the surface its logical to think that the highest priced offer is the best offer. However, if you took a further look you would realize that there are other important factors within an offer to purchase real estate in Massachusetts than just price. Here is a quick look at two of these factors that I have seen most commonly.
1. Financing – How a buyer finances their home purchase is critical in considering an offer. The less that the buyer needs to finance the stronger the offer appears to the seller. This is because in the sellers mind there is less chance of the buyer not being able to get financing from a lender. For instance, an all CASH offer (no financing needed) will look stronger to a seller and thus a lower offer price might be considered.
2. Closing Date – When you can close on your new home is also an important factor in an offer. If your offer is higher but you are unable to close on the property until a month later than a lower priced offer may look more attractive. This is because the longer till close time the more chance of a buyer possibly changing their mind. In addition, another month means another mortgage payment the seller has to make.
There are other factors as well including inspection contingencies, seller concessions and other buyer requests. Your buyer agent should be able to walk you through the offer process and help you craft the best offer which will help you buy your dream home.
