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5 Red Flags Home Sellers Shouldn’t Ignore in Offers

Selling a home can be a very stressful time.  Selecting the right offer which might mean evaluating things other than offer price is important.  Knowing what things to look out for in offers could help ease the process.  Here are a few red flags of which you should be aware:

1.  Low earnest deposit amount.  A very low deposit could mean a buyer isn’t really sure about the home and would be willing to walk away from a very low deposit amount.  Many times low deposit equates to contracts falling through.

2. A buyer not being pre-approved.  Confirming with lender the buyer has in fact submitted all necessary documents to be pre-approved is an important first step to a successful transaction.

3. The buyer makes the purchase agreement contingent upon the sale of their home.  This is also referred to many times as the domino effect as if their purchase on their home falls through, then yours falls through too.  In the meantime, you have been off market & likely done repairs requested by that buyer.  Try to avoid contingent contracts unless you can verify the contract is in writing and buyer had been through due diligence and also has a good amount of earnest deposit down on that home they are buying.

4. A buyer offers higher than asking price and asks for cash back at closing from the seller.  This you should steer away from as it could cause you to get into hot water with the law and could be fraudulent if a loan involved.

5.  A far out closing date with low deposit.  This could signal something is wrong with the buyers credit that they need time to fix or possibly that they are trying to get a home sold without making it contingent upon them selling the home in order to win the contract on your home.  Again verifying with lender pre-approved and no conditions such as needing to sell a home and getting a substantial deposit possibly even one that is non refundable for any reason could better protect you.

If you have questions about buying or selling, give me a call, send an email or text.  And remember my team and I are on standby 7 days a week ready to help you take the smoother road to sold.

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