Let's Make a Deal: Tips for Sellers with Offers in Hand

In this wild D.C. region market, many home selling scenarios often unfold in the following way: You list your home on Thursday, have an open house on Sunday, and by Monday you have multiple contracts on the home.

Now all you have to do is pick the highest offer and you’re done, right? Well, not really.
It’s not just a matter of choosing the “highest offer.” It’s a matter of choosing the best offer at the highest price that has the best chance to make it to settlement.

Buyers can submit offers at any price that might look appealing to sellers. But completing the entire process—the sometimes-bumpy road between ratification and settlement—is something that could hinge on crucial decisions made in that that golden hour when sellers choose the right contract. Not only do sellers need to consider price, but they also must consider contingencies and situations that come up between ratification and settlement that could derail a deal and have buyers legally walk away after a listing is off the market for a couple of weeks.

Here we take a look at some key factors that sellers should consider, many related to the Realtor® association contracts used within the D.C. real estate region, which change periodically. Accordingly, we advise sellers—as well as buyers—to read every word of each contract and accompanying addenda to understand what’s relevant to them and to consult an attorney if they require legal advice. The following is not an all-exhaustive look at every possible contract scenario, but it still can serve as a solid guide to determine the best contract characteristics that will get that contract to settlement.

First, to get it out of the way, what we would consider as air tight an offer as possible would be one for all cash (with proof of available funds) at asking price or higher, with no contingencies—no inspection, financing, appraisal, etc.—and a settlement date agreeable to the seller. With few exceptions, if accepted by a seller, buyers would be obligated to go all the way to settlement as soon as the contract is ratified. But in most scenarios, that’s not the case. So, here’s how we would go about analyzing an offer to find the strongest candidate.

Price is the starting point. For most, price is ultimately what it’s all about. How much is someone willing to pay for a home? This is the figure upon which most everything else in the process hinges—from ratification to settlement. So, when selecting the best contract, it’s natural to select highest priced contracts as strong contenders. But there’s more to it than that single, final number.

Continue reading here.

Christopher Prawdzik and his wife Angela Logomasini are licensed Realtors® with Samson Properties in Alexandria and are members of the Northern Virginia Association of Realtors® Top Producer’s Club. Operating as D.C. Region Real Estate, they serve the Virginia, Washington, D.C., and Maryland real estate market and offer comprehensive real estate services, including 4½% full-service listings.

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