What DC Metro Area Sellers Should Look for When Reviewing Offers

In the Washington DC Metro area market, the inventory is incredibly low, and there are more buyers than available homes. This high demand for housing often results in multiple offers in this aggressive seller's market.

tips for dc area sellers: reviewing multiple offers

Although a bidding war on your home may seem like a dream come true, how do you filter through multiple offers and find the right one? This article offers tips for assessing and selecting the best offer on your DC Metro area home. 

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Talk to Your Agent

Before listing your home, discuss your situation with your agent. What is the most critical factor in the sale of your home? For example, are you relocating? In that case, the momentum of the sale is your top priority. Discussing your preferences with your agent will make reviewing offers easier because you're more likely to get offers that fit your criteria, since your agent is aware of your needs. 

Substantial Earnest Money Deposit

An earnest money deposit also referred to as a good-faith deposit, is a deposit generally equal to 1% to 2% of the sale price. If the buyer walks away from the sale, the sellers usually keep the deposit, barring any contingencies.

Source: homeownershipmatters.realtor

The less opportunity the buyer has to forgo the transaction, the better. It is always a good idea to choose an offer with fewer contingencies.

Larger Down Payment

Most mortgages require buyers to make a down payment. Typically, larger down payments reflect the buyer's financial capability to close the sale. 

Some mortgages, such as FHA loans, require a minimal down payment. However, according to the National Association of Realtors (NAR), the average down payment for all buyers is 12%. Buyers who offer larger down payments are more likely to secure a mortgage. As a seller, your only goal is to close the transaction, and there must be an approved mortgage for that to happen.

Seriously Consider Cash

Cash offers alleviate the uncertainty of the transaction falling through due to financing. However, you must verify proof of funds before setting the wheels of a cash offer into motion. 

Source: cpapracticeready.com

Cash continues to be king in real estate. But keep in mind you may be trading a larger sale price for the convenience of skipping the mortgage funding process. While you should seriously consider a cash offer, discuss the pros and cons with your agent.

Reviewing Offers in the DC Metro Area

Your needs and the market may not always line up favorably. It is essential to work with a seasoned DC metro area Realtor who can help you sift through offers and accept the best one for your unique situation.