If you’re considering listing your home for sale in Orange County, you most likely understand that the market is very healthy in the fall of 2020. Although we’re in a low interest rate environment, it’s leaning toward a sellers market.
The median home selling price in Orange County has reached $800,000. This can be partly explained when interest rates are low buyers can afford a higher priced home. In neighborhoods with constant strong demand such as Irvine, Newport Beach, Laguna Beach, and Mission Viejo, buyer interest and offers seem to prevail no matter the state of the economy.
By having your home priced right and listed with the right agent, it’s not unheard of to receive offers above list price. Properties can be under contract the same day you have it up for sale.
Tips to Selecting the Right Offer
As a seller, you’ll quickly discover that not all offers you review with purchase prices that are very close are equal. You should consider other aspects besides the buyer’s purchase price such as contingencies, date to close, loan terms, and quite a bit of other conditions that buyers can submit with their offer.
Keep your agent informed
From the beginning of your agent representing you, it is best practice and recommended to include your agent in each step of the negotiation process. They can discuss typical outcomes and help you choose which offer best meets your needs. Moreover, your agent can educate you on the usual contingencies, combined with other terms that are frequently put in the offer.
Compare contingencies and financing
Besides the buyer’s offer price, you should really take a hard look at the contingencies and financing terms included within any offers you receive.
Contingencies are conditions that need to be fulfilled prior to the sale completing. Typical contingencies are home inspections, appraisal, and the loan. The fewer the contingencies the better for a seller, because the more that in the offer the more difficult it is to close the sale.
Furthermore, it’s crucial to see how your home will be bought, by cash or by financing. Cash offers tend to be regarded as the best, because you won’t have to deal with lenders and an appraisal is now optional, not mandatory. If you’re looking for a fast sale, an all-cash offer is at the top of your list
Accepting the Offer
In a hot market, some buyers will put anything in their offer to shine over other purchase offers. However, you’ll want to fully understand which terms will truly benefit you as a seller.
When you’re considering offers with financing, it’s almost always better to favor pre-approved home buyers, because they’ve done more legwork to secure their financing. Buyers who want a short escrow period of two weeks or less, pay all or most closing costs, or include an escalation clause to outbid other offers may also be a great offer to consider.
Do not forget your home’s value
If you receive lot of offers on your home from your agent, you may wind up in a bidding war. While this can push the price up considerably, you really need to not be in a hurry into agreeing to the offer with the highest bid price.
The reason is because if a buyer is financing the purchase, your home will have to be appraised. If the appraised value comes in at your original list price and not the highest bidder it creates a problem for the lender. They will only lend a certain percentage based on the appraisal or purchase price whichever is lower.
This means the buyer would have to bring additional cash into the transaction above the appraised value. This means you ought to review the highest bidder’s appraisal contingency terms or see if they included a clause they will pay the difference in cash in case the appraisal comes in below the asking price.
Gearing Up to Sell Soon?
Selling a home doesn’t need to be a demanding ordeal—at least not when you work with a top-rated local agent! Do not hesitate to contact us by phone and let us know what we can do to help with your real estate needs. We have the resources and positive experiences to get your home sold promptly and at a price you’ll like!