You’re selling your home in Ancaster, and two offers come in. One is $10,000 higher but asks for an earlier closing and a financing condition. The other gives you the closing date you wanted and comes with fewer conditions. Which would you take?
Before I recommend a response, I put the offers side by side. Here’s what I’d look at with you.
Work out what each offer leaves you with
Start with the price, then account for any credits the buyer is asking for, any work you’d agree to complete and any extra costs the proposed closing date would create.
Suppose the higher offer asks for a $4,000 credit and its closing date means you’ll spend another $3,000 on temporary accommodation, storage and a second move. That $10,000 price difference is down to $3,000 before factoring in any differences in commission or other selling costs. Once you know the real gap, you can decide whether the terms are worth it or whether there’s room to negotiate.
Read the conditions and check the deposit
A financing condition, an inspection condition and a condition on the buyer selling their own home each introduce a different uncertainty. Check what needs to happen, when the deadline falls and how that timing fits your plans. A few days for an inspection may be easy to accommodate. A longer wait while the buyer tries to sell their own property may be harder if you’ve already committed to your next home.
Look at the deposit amount and when it’s due, too. I review it alongside the rest of the offer, especially if the closing is several months away.
Put both closing dates on your calendar
If you’re selling in Ancaster and buying elsewhere in Hamilton, Burlington or the surrounding area, put both transactions on the same calendar. An early sale closing can leave you needing somewhere to stay. A later closing can mean carrying two properties for a period. If both transactions are set to close on the same day, talk to your lawyer and lender about how the funds and keys will move.
I’d also check the smaller terms. Is the buyer asking you to leave the garage shelving or the basement freezer? Are they asking you to fix something before closing? Those details are much easier to negotiate while the offer is still on the table.
Decide what you’d counter
Say you’re comfortable with the higher offer’s financing condition, but its closing date would disrupt your move. You might counter on the date and leave the price alone. If the date works and the requested credit is the sticking point, focus your response there. Knowing which term matters most gives you a clear reason to counter.
I’m Stephen Paige, Broker of Record, and I’ve helped buyers and sellers since 2007. If you’re selling in Ancaster, I can compare the offers with you and show you what you’d keep after the costs of each. I offer full-service, low commission selling and explain the listing fee, any cooperating buyer brokerage commission and applicable HST upfront.
If you’re buying your next home as part of the move, I can also explain my buyer rebate of up to 1% of the purchase price, subject to the cooperating commission and program terms.