Should You Accept the First Offer on Your Hudson Home?

The first offer is often the best one. Sometimes it isn't. The way to tell is to look past the price. If you're selling in Hudson, here's how I'd judge it.

Judge the offer by what you net

Compare offers on what you walk away with, not the headline number. Financing type, down payment, contingencies, requested credits and the closing date all change your outcome. A lower price with fewer conditions can beat a higher price that's likely to fall apart.

Ask your agent to put every offer on one page with the same rows: price, financing, down payment, inspection terms, appraisal terms, credits requested, closing date and possession. Seeing them side by side makes the real differences obvious.

Terms can beat dollars

I tell buyers that terms can win a bidding war, like a free rent-back for the seller or a closing date that lines up with the seller's move. Turn that around as a seller. If you need three more weeks in the house, an offer that gives them to you may be worth more than one that pays a little more but wants possession right away.

Tell your agent what matters to you

When I teach agents to write offers, I tell them to call the listing agent first to find out what matters most to the seller, because it isn't always price. A lower offer with better terms on closing date, financing or inspections can be accepted over a higher one. As a seller, you can make that easy. Tell your agent up front what you value most, whether that's timing, certainty or the highest number, so they can say it out loud when buyers' agents call.

When the first offer deserves a yes

If the house was priced right, marketed well and shown, and the offer is close to your price with solid financing, that first buyer has probably done the same math a second buyer would.

Buyers are payment-sensitive right now, with the 30-year rate at 7.32% in Freddie Mac's October 22 survey. The gap between a winning offer and a losing one is often only $25 to $75 a month, which at that rate is about $3,600 to $10,900 of loan. A well-qualified buyer at a fair number is hard to beat by waiting.

When to counter or wait

If an offer comes in quickly and well below your price, the house may be underpriced or the buyer may be testing you. A counter keeps the conversation going without closing the door. If you're in the first days of a listing, a short wait to let scheduled showings happen can be reasonable. Set a clear deadline so the buyer doesn't walk.

When an offer has an escalation clause, keep in mind that it can reveal a buyer's top number. Many sellers prefer to set a highest-and-best deadline without escalations instead. Ask your agent how to handle one before you counter.

Higher-end homes behave differently

In the luxury range there are fewer buyers and the pace is usually slower. A serious offer may be the only one for weeks, so I give it more weight than I would in a faster price range. That doesn't mean taking whatever comes in. It means a strong first offer deserves a real conversation, not a reflexive counter at full price.

A simple way to compare two offers

These numbers are hypothetical. Offer A is $750,000 with a financing contingency and a 45-day close. Offer B is $735,000 from a buyer with a larger down payment, a fully documented approval and a 21-day close.

Offer A pays $15,000 more on paper. But if your house costs about $4,000 a month in mortgage, taxes, insurance and utilities, the extra 24 days cost you about $3,200. And Offer A has more ways to fall apart. Subtract your real costs and your risk, and the gap shrinks. Whether it disappears is your call, with your agent's help.

Your agent can also help you read between the lines. How quickly did the buyer's lender respond? Did the buyer's agent ask good questions about the house? Has the buyer already sold their current home, or do they still need to? Those details don't show up in the price, but they tell you a lot about which offer is most likely to close.

Questions to ask yourself

Is the buyer qualified, and have we seen proof? Does the closing date work for our move? What do I risk by waiting? If the honest answer to the last one is losing a solid buyer, take the deal.

If you're getting ready to sell in Hudson and want help weighing offers, schedule a time with me or someone on our team at 21mike.com.

Mike Ferrante
The Mike Team at LPT Realty
www.21mike.com
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