It's exciting when potential buyers appear who are ready to make an offer on the home you've listed among Tuscaloosa homes for sale. But if you're new to this process, you may be unsure about which offer is better than others. Happily, there are ways to assess why one offer is a standout among the competing offers. See what our real estate agents have to say about determining what a good offer on your home might look like. 

1. The buyer has their financing in order.
   You, the seller, know approximately what you're looking for in the sale price. You will need to see a pre-approval letter on a lender's letterhead that shows the buyer can come up with a loan sufficient to buy your house. If you're looking at a cash offer, you'll want to see proof of funds sufficient to cover the sale price in the form of a bank or investment account statement.
   A cash buy has some advantages — you don't have to wait for a loan to be approved — but you also may be offered less on the sale price because the transaction will probably be concluded more speedily.
   
   
2. The buyer offers a larger earnest money deposit.
   The buyer may offer a larger earnest money deposit, or good-faith deposit, than other potential buyers. The buyer entrusts this money to the seller's brokerage firm in an act of good faith, showing that he is serious about the purchase. Usually, these deposits are 1 to 2 percent of the sale price. Anything beyond that shows the buyer is serious indeed. This money goes toward the down payment if the offer is eventually closed on. But if the buyer breaks the contract, the seller may be able to keep the deposit.
   
   
3. Look for an offer with the least contingencies.
   You can certainly expect buyers to propose contingencies when negotiating a sale; for instance, most buyers will ask for time to make a home inspection — with the sale contingent on any issues found with the house and whether or not repairs can be made before closing on the home. Or, there might be an appraisal contingency. The appraisal should match the agreed-upon price for the home. If it doesn't, the buyer and seller will have to negotiate another price before they can settle.
   It's better for you, the seller, to have fewer chances for the buyer to take leave of the transaction, as anytime a contingency is not satisfied, the buyer may walk away with his earnest money deposit, and you've wasted time on selling your home.
   
   
4. The highest offer is the best offer — or is it?
   Generally, a seller is looking to get the highest offer possible. Indeed, the highest offer might be the best offer. But the high offer might have a probability of not closing for a number of reasons. It could then cost you more in repairs, closing costs, and the like. In this scenario, the highest offer won't be your best offer.
   
   
5. Factor in a closing timeline with the sale.
   Maybe you need a quick turnaround so you can move. In that case, you could find a cash offer for a little less than the asking price very attractive so that you can move quickly. On the other hand, if you need some time to move, you might choose to go with an offer that fits with your timeline, even if it's lower than your asking price. 

There's a lot to know about negotiating the sale of a house. That's why you need a knowledgeable real estate agent you can trust. Contact us today.