In this wild and crazy seller’s market that we’re in, most homes that our clients have listed have received multiple offers in a very short time period. Choosing the right offer may seem as simple as choosing the highest offer, right? Not necessarily. You want the offer on your Kansas City home for sale that is going to work the best for you, and that may not mean just the price being offered. Let’s break down other options.
All Cash Offer
This one seems like a no-brainer, right? Someone offers you all cash for your home which means avoiding the financing step and potentially the appraisal and inspection step. In this year’s market, we’re seeing a lot more cash offers like this, and they are certainly hard to resist. And you don’t have to resist them! It’s a mostly positive thing. Here could be a couple things to consider, though, when receiving a cash offer.
- They may want a faster closing date, and that may or may not be a deal breaker for you and them.
- This may not be the highest offer, but because of the cash offer and the things mentioned above, you might want to consider taking a lower offer to move the process along and avoid anyone backing out.
Even just last year in the market that seemed hot but had nothing on 2021’s market, a full-price offer was attractive and often the one chosen. Today? A full-price offer is most likely the lowest offer coming to the table. On average (and dependent on the price of the home), we’re seeing anywhere between $15,000 – $30,000 over asking for a normal offer.
If you’re a buyer, this is something to consider when looking at the starting prices of homes in your budget. You may need to look at lower-priced homes, knowing you’re going to have to offer more than asking.
In addition, this is where an appraisal waiver could benefit you (if your loan allows for this). Because some of the homes would not necessarily appraise for the offer price. So if you require an appraisal, you may still need to put in that if the home only appraises for a certain amount, you’re willing to go a certain amount of dollars over that appraisal amount in order to ensure that your offer gets chosen.
We’re seeing many homes only accepting cash or conventional loan offers. We wrote a blog explaining the differences between home loans that you can check out to refresh your memory. So if you’ve been pre-approved and are a conventional offer, you’ve got a leg up in this market!
If you’re coming in with an FHA or VA loan, your offer won’t be out of the question, but just know that you may need to wave any inspection finding fixes to be competitive. And as the seller, it doesn’t mean these loans have to be out of the question for you either! If they’re covering all closing costs and waiving an appraisal or inspection (which an FHA loan most likely wouldn’t be able to do), they could still be in the running if they’re offering the most money!
This has always been an important piece of an offer, but in a seller’s market, the flexibility has to land on the buyer with this one. If the seller wants out quickly because they’re trying to buy a home as well, the buyer will need to be willing to do a faster closer date than normal. Or, if the buyer is anxious to move in, but the seller needs more time to move out, the buyer will possibly need to make temporary living arrangements until they can move in. Whatever the case, this could be a big consideration for the seller. So put your ideal closing date on the offer, but if you want to be competitive, you should mark that you’re flexible on that for the sellers.
Some sellers aren’t all about the money. Leaving their home that holds memories and sentimental value is really tough for them, and they want to know that whomever is moving in has goals to make it a family home or to make updates where the previous sellers just couldn’t make happen.
So a note to you buyers – writing a letter isn’t a lost art! A seller could take notice when you take the time to tell them your story and your hopes and dreams for their new home. So if you really want your offer to be considered, give a letter a whirl!
So many things for homeowners to consider when looking at offers on their Kansas City home for sale! And so many things for buyers to keep in mind when putting in an offer. This is why it’s important to have the right Kansas City real estate agent on your side. You want someone who is responsive, connected and knowledgeable in these situations.
Enter Dani Beyer Real Estate. Our sellers have been receiving multiple competitive offers on their Kansas City homes for sale since the beginning of the year, and going under contract in a matter of 48 hours. We’ve been able to help guide our sellers to the right offer by presenting as much information as possible on the buyers and their offers and asking any questions or negotiating where necessary. Don’t let this process bring you too much stress! We’re here to take care of that for you. Reach out for a free listing consultation today, and we’ll walk alongside you throughout the entire home selling journey.