Highest Offer Isn't Always the Best

As the spring 2013 real estate market heats up, there is a lack of inventory but a lot of buyers. Because of that, we are seeing multiple offers and bidding wars, especially when a new listing comes on that is in very good condition and priced right. With this shift to a seller's market, it's important for homeowners to realize that there is a built-in check to the current excitement: the appraisal.

When multiple offers are received, the seller needs to carefully consider all aspects of each offer. The "best" offer may not be the one with the highest purchase price.  In some cases, the buyer's down payment and ability to qualify for a mortgage could trump the offer price.  And while an offer over the asking price may be tempting, keep in mind that the property still has to appraise if the buyer is getting a mortgage.  Over the last year, I have seen several contracts that had to be re-negotiated to a lower sales price because the appraised value came in below what the buyer and seller had agreed upon.

If you're thinking about selling your house, it's a great time to get in the market, with so many buyers out there and mortgage rates still low.  While you may think you can save some money by selling on your own, the process is an intricate one. Think seriously about hiring a local agent who has the expertise and knowledge to help you navigate the process, negotiate on your behalf and guide you in analyzing offers so you choose the best one.  

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Candace Larson
Sales Associate 

Keller Williams Village Square Realty
257 E. Ridgewood Avenue
Ridgewood, NJ  07450
201-445-4300 x 222

www.realestatemahwah.com 

#1 in closed sales volume, Keller Williams Village Square Realty, March 2013