It can be hard to imagine — choosing an offer that is $1,000, $5,000 or $10,000 less than the highest bidder. However, it actually happens all the time, and for good cause.
Here are four reasons why you might choose a lower offer when selling your home:
1) Cash offers are more reliable than loan-contingent ones, especially because there are no lenders involved. If your priority is to close fast, accepting a lower all-cash offer is a good strategy.
2) If the highest offer is full of contingencies, a lower offer might be worth the peace of mind. If a prospective buyer waives inspection, financing and appraisal then you know the odds of them backing out are slim.
3) A well-qualified buyer who starts low may ultimately get you the most money. Find out what you can about a buyer’s motivations and qualifications. If their offer starts low but they express a strong interest in your home and they have a great pre-approval letter, counteroffering may ultimately net you the most money. Your real estate agent can help you weigh each buyer’s potential.
4) Finally, finding an offer that fits your timetable can be worth a lot. For example, consider a situation where you need extra time before your new housing is ready. Choosing an offer that lets you stay as long as you need could save you money on temporary storage and rent.
The right offer usually comes down to more than just top dollar. By considering price, financing, contingencies and motive, you can be certain you’re choosing the offer that’s best for you.