Selling a home is a big endeavor that no homeowner takes lightly. But sometimes, finding a buyer can be difficult, especially if the market is cold, and that can make homeowners feel like if they don’t sell to the first person who makes an offer, the home won’t get sold. This is a common but misinformed mindset because not every buyer is a good buyer, and sellers need to be aware of the signs that a buyer may cause trouble and hurt the sale of the home. Here are some telltale warning signs that all sellers need to know when considering offers.
The Buyer Is Only Pre-Qualified For a Loan
When setting out to buy a new home, the first thing agents will advise their clients to do is get pre-approved for a loan, and before a buyer can do that, they need to get pre-qualified. Some buyers don’t realize that being pre-qualified does not mean they’re pre-approved for a loan and think they’re the same thing due to how similar the names are, and some sellers may not notice the difference, either. When considering offers, always look for the proof of pre-approval, which will be document from the lender stating that the buyer is allowed to borrow a certain amount of money, and that proof also means that the lender has done thorough research about the buyer and their finances.
The Buyer Doesn’t Have an Earnest Money Offer
As part of an offer, it’s customary for buyers to make an offer of earnest money to show they’re serious about buying the home. If the homeowner accepts the offer and the buyer later pulls out of the deal for a reason that isn’t protected by contingencies, the homeowner gets to keep the entire earnest money payment. If a buyer makes an offer with no or even a very small earnest money offer, it can mean that they aren’t very sure if they actually want the home and want an easy out in case something better comes on the market later.
The Offer Uses Too Many Contingencies
It isn’t strange for an offer to contain multiple contingencies. In fact, buyers are advised to always use three basic contingencies when submitting an offer. They are:
- The appraisal contingency: This ensures the home is worth the price it’s selling for.
- The financing or loan contingency: This ensures the buyer has a loan and lets them back out if for some reason their approval is revoked.
- The home inspection contingency: This ensures the buyer can get the home professionally inspected and issue a Request for Repair if anything turns up.
The trouble with contingencies is when a buyer seems to be including every one in existence. If this seems to be the case, it can mean the buyer is trying to give themselves space to back out of the deal freely at any inconvenience as long as it aligns with a contingency.
The Buyer Tries To Change the Timeline
After an offer has been accepted, the buyer and seller will have also agreed to the timeline they’ll both be working on. This is important for both parties to keep to because the seller may need time to buy a new home, or the buyer may need to move in by a certain date for the new school year. If a buyer is trying to accelerate or decelerate the already-agreed upon timeline, that can be a red flag because it may mean something is wrong on their end, like something happened with their mortgage and they’re quickly trying to get a new one.
Selling a Glenmore home is already a stressful and arduous process, and dealing with a bad buyer can make it even more so. Keeping an eye out for these red flags can help sellers identify a bad deal and steer clear from it.