Great job! You presented your home in great fashion and priced it correctly, so now you have multiple offers on your home. But how do you decide which contract to ratify? Obviously, price is a major factor, but it’s not the only factor you should consider. Financing, contingencies, rent backs, settlement dates and conveyances are other items you need to consider before deciding on which offer to work with.
Your Real Estate Agent will guide you through negotiating the best terms and conditions possible. At JS Realty we use a spreadsheet that lists all the important, negotiable components of the offers side-by-side to make it easier to compare offers. Start with your highest offer and work your way through the other elements of the contract. This is the time you have the most leverage in your negotiations, so use it wisely!
Following is a list of the other components of the contract that you should review closely with your Real Estate Agent:
Buyer’s Financing – is the offer a conventional loan or is it a government backed 
loan such as an FHA or VA? Conventional loans tend to have less stringent home inspection and appraisal requirements.
Home Inspection Contingency – if an offer has no home inspection or if the home inspection is for informational purposes only, that could save you (the Seller) money on repair costs.
Settlement Date – if you would benefit from a rent-back now is the time to put 
that in place. Sometimes we are able to negotiate a free rent back in multiple offer scenarios, which gives you the freedom to make your move easier and less stressful.
Appraisal Contingency – this can be the hardest contingency to get waived, but in some multiple contract situations we have been successful in getting the appraisal contingency waived.
Contingency Timelines – you will want to shorten the timelines for home 
inspections and any other inspections to as short as possible. The job of your Real Estate Agent is to get all of the contingencies in the contract released as soon as possible. Appraisal & financing contingencies are difficult to shorten too much, because you are relying on 3rd parties to do their job, so therefore you have less control.
Down Payment – how much a buyer is putting down for down payment and 
earnest money deposit also plays a part in your decision for which contract to choose. The more money a buyer has invested in the transaction, the more committed they are.
Remember: this is when you hold the most leverage of any time during your transaction, so make it work for you!
Feel free to reach out to the JS Realty Team with any questions about multiple contracts or any other Real Estate related questions!
The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.
Keith Harris is a Lender at 
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selling or buying is a hefty task for you to take on. On average, most people only buy or sell real estate a couple of times in their entire lives. Now that you are ready, hiring the right Realtor should be at the top of the list. Yes, most of us have a family member or a friend that “might” be able to help, but let’s be real – unless you know they are fully committed to the job as a full time agent and are the best at what they do, you may want to rethink who you are choosing and why.
great Realtor can not only bring professional insight on the home selling or buying process, but they will also coordinate and manage all the professionals during the process. You deserve a high level of service and below are some key questions you should consider asking a Realtor prior to engaging their services.
media have really changed how Real Estate is done. While they all provide a level of efficiency to the process, the pace at which things get done has increased tremendously. Your Realtor should be able to accommodate your style of communication. If you are someone who likes to email, then a phone call or text may not be the best way to communicate with you. If you can’t answer the phone during the day due to work, then you really need someone that is willing to email or text you instead of calling. If you are out of the area and can’t see a house, a video tour of the home can help a lot too! Realtors have all sorts of services available to them, including electronic signature services. This not only saves you paper and ink, but time – there’s no need to print, sign, scan and email anymore. Understanding what tools and resources your Realtor has available to them can save you a lot time. Be sure to ask and make sure you are working with someone who can accommodate your preferred level of communication.
front counts. Buyers usually don’t pay commission directly, but sellers often do and the costs can vary from agent to agent. If you are selling a home, it will be important to understand and know what you are getting for the fee. An agent may charge less than another, but that does not mean they all provide the same services and resources. Make sure you are comparing apples to apples. Also ask for a breakdown of estimated closing costs, as they are different from state to state, and can also differ depending on if you are buying or selling. Understanding this upfront, can save you from “unforeseen surprises” later in the transaction.
the seller in the transaction? While it’s usually legal to represent both parties in a transaction (with proper disclosures), it’s important to understand where your Realtors obligations lie. Have your Realtor explain their agency relationship to you and describe the rights of each party. At the end of the day, we all want the highest level of service and someone to represent our best interest. Make sure your expectations can be met.
surrounding yourself with professionals that will meet your needs will be key. A Realtor providing a high level of service will have surrounded themselves with other professionals in the field alike, whom they will be referring along the way. You may only buy or sell a home 2-3 times in your life – why not ask for the best?
become attached to our homes and have experienced many milestones, events and memories. By detaching yourself emotionally from the home, you will be better equipped to make smart financial decisions.
Appraisers generally use 3 standard approaches to determine the market value of a property: The Cost Approach, The Comparison Approach, and The Income Approach. Combining these 3 approaches enables the appraiser to give their professional opinion on the market of the home.
contracts need to be carefully reviewed to ensure you know exactly what the potential buyer is proposing. Only after you have reviewed and researched all offers will you be able to proceed to choose the contract that works best for you.
In this 2-part series, we’re walking you through everything to consider when reviewing an offer to purchase your home for a successful and smooth transaction. If you missed PART 1, you can find it 
you need to give them time. Financing is typically 3-4 weeks and it is the weakest of the contingencies. The buyer has control over the home inspection and HOA disclosure contingencies; however they do not have as much control over the appraisal and financing. That is why we want the Home Inspection completed and HOA documents reviewed as early on in the process as possible.