What to keep in mind when accepting or rejecting an offer

A great deal may not look so good anymore, for example, if it means you move in a month early. Or, on the contrary, it is possible that you give priority to time and not price, especially if you move to a new city. Your agent will know what you want both financially and personally, and can thus help you define whether the offer you are evaluating meets those goals.

Before the first offer arrives, here's what you need to know about the offer evaluation process, including the main factors you and your agent should consider in accepting or rejecting your offer.

5 important things, besides the price, when evaluating an offer.

1. The deposit

An important consideration when evaluating an offer is the amount of the security deposit, also called a good faith deposit or EMD. It is the amount of cash that the buyer offers to pay when the sales agreement is signed to demonstrate their serious intention to buy your house. This money, which is usually held by a title company, will go toward the buyer's down payment at closing.

2. The contingencies

Most offers include conditions and contingencies: clauses that must be met before the deal can go through, or the buyer has the right to back out of the deal with their EMD. Contracts with fewer contingencies have a better chance of closing in a timely manner.

Here are five of the most common contingencies:

• Financial contingency. Also called loan or mortgage contingency, it protects the buyer in the event that his credit institution does not approve his mortgage. Although there may be variations, as reported by mortgage lenders, the average time it takes for a buyer to get a mortgage approved is around 21 days.

• Current home sale contingency. Depending on the buyer's financial situation, your offer may be contingent on selling your home. Buyers generally have 30 to 90 days to sell their home before the sales agreement is voided. This contingency puts you at a disadvantage because you have no way to control whether or not the buyer sells his home within that period.

• Title contingency. Before approving a mortgage, the lender asks the borrower to prove that the title is "perfect," a process in which the buyer's title company reviews any possible encumbrances or liens registered in the name of the property. The buyer thus ensures that they will become the rightful owner of the property and the entity is protected against any claim related to liens, bad faith claims by previous owners, administrative problems with judicial documents or forged signatures.

3. The down payment

Depending on the type of mortgage, the buyer must make a down payment on the home, the amount of which may affect the strength of the offer. In most cases, the amount of a buyer's down payment is related to the loan they take out to purchase the property. Your main concern as a seller, of course, is getting the deal closed, and for that to happen, the buyer's mortgage must be approved.

4. Cash Offers How Much

The more cash the buyer shells out, the more likely it is that the lender will approve your loan. Therefore, a cash offer is ideal for both parties. The buyer does not have to meet an appraisal contingency, meaning having the agency appraise the home to ensure that the property's value will cover the mortgage, nor a financial contingency, which requires buyers to obtain approval from the mortgage within a certain period. And, the fewer contingencies in the sales contract, the fewer risks there will be of the deal falling through.

5. La fecha de cierre

El cierre es el día en que ambas partes firman la documentación final y formalizan la venta. Por lo general, todo el proceso, desde la aceptación de una oferta hasta el cierre, demora entre 30 y 60 días.

¿Cuándo deberías hacer una contraoferta?

Dependiendo de las circunstancias, puede que te convenga hacer una contraoferta. Pero ten en cuenta que cada operación variará según las condiciones particulares del mercado y de tu propiedad. En algunos casos, puedes presentar una contraoferta. En otros, puede ser más útil para tus objetivos aceptar directamente la primera propuesta del comprador. Tu agente va a brindarte información útil sobre cuándo y por qué una contraoferta sería lo mejor para ti.

¿Cuándo se convierte una oferta en un contrato?

En pocas palabras, hay un contrato cuando la oferta del comprador (o la contraoferta del vendedor) es aceptada y firmada por ambas partes.

Estee Soto

Estee Soto is a real estate agent with eXp Realty, a certified mentor and eXp Latino ambassador, and the CEO and founder of TagCrush LLC, an all-in-one digital marketing platform for real estate agents. She leads the TAGHOMES team, specializing in luxury properties, new developments, and international buyers across Florida.

More information about Estee Soto HERE