What Sellers Consider in the Contract

Real Estate Podcast with Amy Wengerd

Here are the main things that matter to sellers when choosing an offer. Is there anything more important to a seller than the buyer’s price? In the current world of multiple offers, what makes the seller choose certain offers over others? Here are the top four things besides price that sellers consider when choosing an offer: 1. Deposit (earnest money). In Ohio, this amount has always been minimal—it’s not uncommon to get a $1,000 deposit on a $250,000 home. However, sellers are now leaning toward offers with higher deposits because it shows them the buyer is serious and less likely to back out of the deal. In other states, the deposit can be as much as 10% of the sales price! “You only have the pages of the contract to tell your story and prove you’re serious.” 2. Type of financing. If the house needs fresh paint or other items an appraiser may flag, the seller is much more likely to choose a cash or conventional offer. These buyers often come with fewer repair requests and surprises. If you’re getting a loan, check with your loan officer to see if you’re able to secure conventional financing. 3. Down payment. Frequently, the down payment line is left blank, which leaves the seller wondering if the buyer is financially strong. We always recommend that buyers indicate the amount they’re putting down, especially if they’re putting down 10% or more. 4. Inspections. This is a sensitive topic; we will never tell our buyers not to inspect a property, but we do feel obligated to tell them that they’ll probably be competing with others who have waived inspections or are doing them just for information, not to request repairs. Put yourself in the seller’s shoes: Would you rather accept an offer with four possible inspections or one that has waived them all? Bottom line: As a buyer, you only have the pages of the contract to tell your story and prove you’re serious to the seller. We cover eight additional items with our buyers to ensure their offers stand out from the rest. If you’re considering buying or selling or have any questions, please reach out to us via phone or email. We would be happy to help you.