How to Assess Offers When You Need to Sell Something Fast

In this article, we’ll use real estate properties as the ‘product’, but the point is the same, regardless of what the product might be.

Here’s a scenario:

The phone rings. It's your realtor, and they have an offer. You're ecstatic because you need to sell your house, like, yesterday. Your first instinct is to grab onto the offer with the highest piece because that's the only thing that makes sense. Right?

Well, not so fast!

You're in a hurry, sure, but you need to take a deep breath and think this through. If you got a high offer, that's wonderful, but until the money is in your bank account, there's no guarantee that the sale will go through. What if the buyer doesn't manage to get a loan? What if they change their mind? What if… some other reason?

You're racing the clock, meaning you don't want the highest bidder; you want the one that’ll go through 100%.

Cash vs Financed Offers

Many people prefer cash offers because there's no waiting for a lender to approve the loan.

About one-third (32.6%) of home buyers in the U.S. preferred paying cash in 2024. – National Association of REALTORS

This is where your local market plays a big role.

If you're after a quick home sale in Fort Worth, you'll likely get several competitive cash offers from investors and builders. This will give you the chance to choose between cash bids and not sacrifice much on price. But in markets like Phoenix, with more houses on sale, cash buyers aren't as frequent, so a financed offer might be your only option. Then there are stable markets like Columbus, OH, where the traditional buyer pool is deep and strong, so a financed offer is often just as reliable as cash.

To sum up, your options for a fast, strong offer can change depending on where the property is.

What Affects the Quality of the Offer

When you're in a rush, the price of an offer might be all you look at. In reality, though, it's just the tip of the iceberg.

Here's how to determine whether you have a quality offer on your hands or if it's just something that'll waste your time.

1.    Contingencies

In the U.S., fewer than 6% of home contracts were terminated. – Redfin

The more contingencies an offer has, the more chances there are for something to go wrong. If you're looking through offers, the ones with the least number of these are faster and more reliable.

2.    Earnest Money Deposits

This is how the buyer puts ‘skin in the game’.

It's a cash deposit, which is usually held in an escrow account, and it shows that they're serious about buying the property. It's like a security deposit on the deal. The amount changes, but most of the time, a larger earnest money deposit means you're working with a committed buyer.

If a buyer wants to walk away without a valid reason, that money is yours to keep.

3.    Closing Timeline

This is the date on the calendar, and it shows when everything is supposed to be done, and you get your money. If the sale is fast, this number is extremely important. A cash buyer can close within a week or two, since there's no bank to wait on.

If your buyer has to get a mortgage, it'll take about 30 to 45 days for the process to be over.

Closing on a house typically takes anywhere from 30 to 60 days, with recent data points pointing to a 44-day average. – Zillow

4.    Buyer Reliability

Not all buyers are the same, which means that some sales go great, while others give you a PTSP.

An investor or an investment company that buys houses relatively frequently has a proven process and money ready to go, so they're very reliable, even for a quick close.

But a person who's buying a property for the first time and using a mortgage won't find it so simple. They're enthusiastic and all, but their ability to close depends on the lender and their own financial situation staying stable during this process.

Generally, an investor is your best bet most of the time, and they'll give you the least amount of headaches.

5.    Perception of Value

You can have the best product in the world, but if you don't know how to sell it, or your brand isn't recognized enough to attract customers, the value of the product isn't what it could be. The current value of a product is NOT the same as its 'potential' value.

How an offer is presented will differentiate a business that makes a lot of money from one that doesn't.

●       81% of real estate buyers say they must trust a brand before making a purchase. – Exploding Topics

●       Only 28% of buyers trust real estate agents; most buyers cite 'trustworthiness' as the most important trait in sellers. – Spectre / Newrez

Building trust, through branding, through design, and messaging, can make a massive difference between an offer in real estate that closes smoothly and for a good amount and one that falls apart.

Conclusion

Look beyond just the numbers because numbers aren’t the whole story.

If you’re in a rush and need to sell a property fast, there are ways of doing that. But even so, if you’re looking to get the best possible offer, then you’ll also need to do a bit of research, do a bit of homework, and work it. It won’t come on its own; not consistently, anyway.