Red Flags To Look For When Selling a Home
There’s countless pieces of advice telling buyers all the different red flags they need to be looking for when buying a home, but what about red flag for sellers to look for in buyers? Not every interested buyer is going to be the right buyer for a home, and there are several signs that sellers should always be on the lookout for when considering offers on their home. Here are some of the most important red flags to know and be aware of before accepting an offer to sell any home.
1. Too Many Contingencies
When used properly, contingencies can protect both buyers and sellers from a bad deal and give them an opportunity to back out before they’re fully committed. It’s very common to see three contingencies in an offer: financing, appraisal, and inspection contingencies. However, once buyers go beyond these and seem to add any contingency they can think of, it shows that they aren’t really committed to buying the home and want to provide an out for themselves so they can get out without facing any penalties. Be wary of these sorts of buyers, because they may try to back out of a deal at the first sign of inconvenience or use it as leverage for a lower price or additional benefits.
2. Pre-Qualified, But Not Pre-Approved
If a buyer is serious about purchasing a home, they will often include proof that they are pre-approved for a mortgage with their offer. However, some buyers will try to substitute pre-qualification for pre-approval, but while these two things may sound similar, they are very different. Pre-approval requires a thorough investigation into the buyer’s finances in order to determine if the they are eligible for a loan. On the other hand, pre-qualification can be granted in just a few minutes online without input from anyone but the buyer, and thus it can be inaccurate.
3. Small Earnest Money Payments
When the seller accepts an offer, the buyer will make an earnest money payment. Once the home has officially been sold, the earnest money will be put toward the mortgage, but should the buyer back out of the deal, the homeowner will be allowed to keep it. Because of this, many buyers like to make bigger payments in order to show the homeowner that they are serious about buying the home because they have a lot to lose by backing out.
If a buyer only puts in a small earnest money payment, they don’t have nearly as much to lose, and it can be a sign that they’re more likely to try to skip out before closing. While this does mean that the seller gets to keep the earnest money left behind, they are still stuck having to start over at square one selling their home.
4. The Buyer Tries to Move Too Quickly or Slowly
Selling a Cortez CO home is a process that takes several weeks to complete after the offer is accepted and the home is officially sold. If the buyer tries to ask for extra time or tries to get the seller to move quickly, this can be a red flag, especially if the buyer and seller already came to an agreement on the timeline they would be working on. When a buyer tries to bend the schedule, it could be a sign that they’re having trouble with their mortgage or are having other problems
Selling a home can be tricky, but keeping an eye out for these four red flags can help homeowners protect themselves from a bad deal. For more selling advice, be sure to consult a professional real estate agent who knows the local market.