What should you consider when reviewing offers for your Tysons Corner condo?
Once a seller has put their property on the market, the next step is to review any offers that come in. Hopefully, you will not only have one offer, but multiple offers! Not all offers for your Tysons Corner condo, however, are the same. Sellers should consider not only the price of the offer, but the terms and the strength of the buyer as well. Let’s take a look at each item in detail:
Price should be one of the major considerations when reviewing an offer. A full price offer, or slightly above full price is always the ideal situation. If you have multiple offers within the first few days of listing the property, you are more likely to get full price (or above) offers. However, seller should be wary about offers that are too high above the list price. One shady tactic that some buyer agents will use is to offer a high price and hope that the property won’t appraise. If the property doesn’t appraise, then it is a time for the buyer to re-negotiate the price down. So getting a super-high price for your Tysons Corner condo may not be a good situation either since you may run into issues down the line.
Buyer Strength / Loan Type
Sellers should also consider the type of loan and the strength of the buyer when reviewing offers for their Tysons Corner condo. For each offer that comes in, I personally call the buyer’s lender to confirm the details of their pre-approval letter as well as assess the strength of the buyer. This is important since, at the end of the day, if the buyer can’t get the loan through, there is no point in selling your condo to that buyer. One indication of the strength of the buyer is the type of loan they have. Of course, an all cash offer with no financing contingency would be the ideal situation. This is more common if you have an investor buying a rental property in Tysons Corner. If your buyer is planning to move into the property, most likely he or she will be getting a loan. In our area, a conventional loan with a significant downpayment would indicate a strong buyer. However, conventional loans with as little as 3-5% down, FHA loans, and VA loans are also common in our Tysons Corner real estate market. Most importantly, the buyer should have a pre-approval letter for their offer amount and a lender that is responsive and able to be reached easily.
Sellers should also consider whether the buyer has any “wiggle room” in case any issues come up during the buying process. For example, there may be some repairs that need to be made, or the appraisal comes in lower than expected. Ideally, you want a buyer with some cushion in their bank account that they are able to handle any unexpected costs that may come up. A buyer that has an extra $20,000 remaining in their bank account after closing may be better to work with than a buyer who is draining their entire savings account to purchase the condo. A buyer with no cushion is more likely to walk away from the contract (via their contingencies) if any issues come up simply because they can’t afford to make repairs or make up the difference in a low appraisal. Therefore, sellers should consider the strength of the buyer when considering their offer.
Contingencies are clauses in a real estate contract that allow the buyer to back out of the contract without any consequences. The three major contingencies typically found in the Northern Virginia real estate contract would be for home inspection, financing, and appraisal. I won’t get into the details of negotiating these contingencies in this blog post, but obviously, the less contingencies the better.
In addition to these three contingencies, any Tysons Corner condo will also have an additional contingency to allow the buyer to review the condo documents and back out of the contract within three days of receiving the condo documents. Sellers should be prepared by requesting their condo docs approximately two weeks before they plan to list their property. This gives the condo association enough time to prepare the documents, which often include an on-site inspection of the condo to make sure there aren’t any violations. By requesting the documents ahead of time, the seller can immediately give the condo documents to the buyer as soon as the contract is ratified in order to remove this contingency as soon as possible.
In Northern Virginia, the typical length to close a transaction from getting it under contract is approximately 30 days. Many local lenders will be able to close in as quickly as 14-21 days, but 30 days is the usual period. Bigger banks many need additional time, up to 45 days. Your preferred closing date really depends on your situation. If the property is vacant, a faster close date would be ideal. If you are still living in the property and need time to buy a new property or move out, then a longer close date (up to 60 days) may be preferred. The important idea is to let the buyer’s agent know your preferences before they submit their offer so they can try to accommodate your preferences as much as possible.
The Role of Your Tysons Corner Real Estate Agent
Reviewing and negotiating offers is one of the most critical duties your real estate agent has since it has a direct impact on the amount of money you sell your condo for as well as the likelihood of the property closing at all. For example, in the past, I have negotiated multiple offers resulting in selling properties over list price, having buyers waive contingencies, and positioning my clients to have the upper hand in negotiating home inspection repairs. Please contact me today to find out how I’m successful at doing this and how you can get the same results! I negotiate aggressively for my clients to get them top dollar. As one of my previous sellers said “Peggy was a top notch negotiator. She will fight tooth and nail for every dollar that you can put in your pocket! She will research avenues that you didn’t know existed!”