So someone is interested in your home—and may have already put in an offer. Before you get swept up in the excitement, make sure you ask every potential homebuyer these four questions. They can help determine whether the sale can really go through. If you’re lucky enough to have more than one offer, they can also help you figure out which one might be the best offer for you.
- Are You Represented By A Real Estate Agent? Buyer’s agents expect a commission. You should work out ahead of time how that commission is being paid.
- Do you have proof of financing? Many homebuyers will need financing to afford a new home. Make sure you ask to see a recent pre-approved mortgage letter from a qualified financial institution, and call the lender to verify it.
Even if your potential buyer is paying all cash, you should ask to see a recent proof of funds letter from a bank.
- Is this purchase contingent on the sale of your current home? If your buyer needs to sell their home in order to buy yours, it adds more variables to the process and it could take longer for everything to be finalized
- How much cash do you have available for a down payment?
The typical down payment for a home may be 10% or 20%. Your buyer should be able to offer at least that. If they can offer more, that may make them a more attractive prospect, since they need to qualify for less financing from an approved mortgage lender.
Asking the right questions can go a long way toward finding the perfect buyer for your home