Thinking of Selling your Littleton Home in 2021?

If you’re thinking of selling your Littleton, Colorado or surrounding area home, I’m seeing sellers getting multiple offers on their homes, even as many as 10 to 15 offers, so it can be super confusing and exciting all at the same time. I totally get it!!! Just this week alone, I had two houses that went pending and I had between 10 to 15 offers on each. So how do you know what offer to choose? Is the highest offer always the best offer? Well, if you’re wondering, or possibly considering, selling your home, then listen in. Many sellers think that the highest offer is always the one they should take. Well, the highest offer doesn’t always mean that it’s the best offer and let me explain why. I

If there is a loan involved and a buyer offers you an insanely high price for your home, we need to make sure that the home will actually appraise at the contracted price. So why does this matter? Well, because the bank will only loan based upon the appraised value. So let’s break that down in the layman’s terms for you. If the buyer offers you $650,000 for the home, then the appraisal value comes in at $640,000, the bank will only loan on the $640,000 price, so there’s a difference of $10,000 so that means that the buyer would have to come in with the difference.

So understand the buyer still has to come in with their closing costs and down payment and possibly have enough money in the bank for reserves in addition to coming up with the additional $10,000 to cover the difference in appraise value. So how does this pertain to a seller and what do they need to do to protect themselves?

Well, one of the best options for a seller is to counter for an appraisal gap, meaning that the buyer will pay the difference between the appraised value and the purchase price. When doing this, make sure one, they have the ability to pay the difference. Two, they will still have enough money to qualify for all the fees associated with the purchase and three, that they actually really understand what this all means.

Another option is for the seller to counter back and make some or all of the earnest money go hard at contract or for sure after inspection. In this crazy housing market people are throwing all types of offer to “lock” contracts down and then back out later. If they make the earnest money go hard there wont be any “buyers remorse” after a few weeks into the transaction.

There are a lot more issues to be concerned with when this happens. So, to find out when you’re selling your Littleton Home, how to make sure that you end up with the amount of money when selling your home, that you and the buyer mutually agreed upon, call me today and I’ll do all the negotiating for you and make sure it’s clean and easy. Also for every transaction I do, I donate a portion of my commissions to rescue dog organizations in the area.