Are you selling your home and reviewing multiple offers? Congrats! You’re on the path to getting a chunk of change out of what is probably your largest asset.

But what factors should you consider when choosing the best offer? Read more to learn what every seller should look for in an offer.

What every seller should look for in an offer

When picking the best offer on your house, it’s essential to consider more than just the dollar amount.

A potential buyer’s terms in an offer are just as important as the dollar amount.

These terms will determine how many hoops you’ll have to jump through to reach the closing table in a timely fashion.

So, every seller should carefully review an offer in and out before choosing a buyer.

Pick your preferred financing method

You probably have an offer amount in mind that you would like to meet or exceed. But the buyer needs to prove that they can afford the purchase.

If the buyer intends to get a mortgage, they should obtain a pre-approval letter and include it on their offer.

If the buyer makes a cash offer, ask for proof of funds before accepting it. This will usually come in the form of a bank account statement showing the buyer has the funds necessary to complete the transaction.

If you need to sell your home quickly, you may prefer the all-cash option. It usually involves less risk and a shorter escrow period.

However, keep in mind that all-cash buyers have negotiation power. And they will typically want something in return for bringing a bag of money to the sale.

Be sure to weigh both the pros and cons of all-cash buyers over a buyer with a mortgage before deciding which financing method you prefer.

Consider fewer contingencies

In real estate, contingencies are benchmarks buyers set that must be met before the transaction can move forward.

For example, most buyers will include an inspection contingency in the purchase contract. This gives the buyer time to have the home inspected.

If any issues arise, the buyer might ask for them to be fixed before continuing with purchasing the home.

Another contingency that may appear is the appraisal contingency. This means a satisfactory appraisal of your property must be conducted.

If the appraisal doesn’t match the agreed-upon price of the home, you and the buyer will have to renegotiate terms.

With inspection and appraisal contingencies, if the repairs or terms can’t be satisfied, the buyer has the chance to walk away from the purchase with their earnest money deposit in hand.

Closing timeline

Finally, choose an offer with a closing date that suits your needs.

Consider the time you need before heading to the closing table. Moving out of a home is a lot of work, especially if you’ve lived there for a long time.

While a quick closing may be desirable to some sellers, some need more time to find another home.

Be mindful of your personal and financial needs and take your time in choosing the best offer on your house.