This is one of the greatest challenges when it comes to selling a property. Analyse any prospective buyers carefully because while it’s natural to focus on the highest price, you might lose a more serious proposition.
Here’s what to think about:
1. Cold Hard Cash
A cash buyer might offer less money but they are often a better option than a buyer who is still negotiating with the bank for a mortgage or has a property to sell. If you get a cash offer near your asking price, you should consider it very seriously. Cash is (usually) king.
2. Mortgage Maybes
Buyers who make an offer before they get their mortgage approved by the bank cannot be relied upon. That doesn’t mean you need to discount them, but you should be wary until they can prove the bank is behind them. Inexperienced buyers might not even have been to the bank before making their offer; the reality of mortgage requirements can come as a shock. Often, the konvenju in this case will include a “subject to bank loan” clause and you may end up very disappointed at the end of the konvenju if the buyers have had their mortgage refused by the bank, meaning that you have to start again from scratch.
3. Chain Game
If your buyer needs to sell their own home before they can buy yours, you might want to pause for a moment. Chains are notoriously likely to fall through, leaving you without a buyer several months down the line. Find out how close to selling they are before you enter into a konvenju.
4. Inconvenient Preliminary Agreements
Be cautious of requests for a long Konvenju (preliminary agreement) or a buyer who wants to include multiple conditions. Negotiate these down if you can.