Arcane Properties

Choosing Between 5 Different Offers When Selling Your Home

When you are selling a home, it can be difficult deciding which of the 5 different types of offers are best for you. Depending on the home, you are likely to attract a variety of offers once it is listed. The most obvious differences between these are in the way buyers wish to finance the intended purchase and how they will pay. To help make your decision easier, here are examples of types of offers you may receive and some help in choosing the best one for you.

1. FHA Home Loans

The popularity of FHA home loans has risen in recent years. Partially due to the fact that these loans typically offer home ownership with lower credit requirements and have lower interest rates. Lower down payments are also one of the reasons many people choose them.

The one big problem some people have with FHA home loans is with the stringent requirements concerning the property’s condition. To be approved for an FHA home loan, the property must not be in run-down shape.

An FHA home loan may be a good idea if the home is in an area where lower credit scores are the norm. On the other hand, if your property is in bad need of repairs or has not already been approved for an FHA loan, FHA offers may not be the optimal choice.

2. Conventional Type Loans

Don’t make the mistake of believing that an offer is secure just because the buyer is considering a conventional loan, or has already been pre-approved for a conventional loan. Lowered down payment and credit score requirements have something to do with that. Some conventional loans allow lower down payments than with FHA home loans and most do not carry the same restrictive condition policies, nor do they always require approval on the building.

Properties in good condition that are in stable neighborhoods can generate good conventional finance offers but beware of those with potential for legal or financial issues in the community, or properties having major repair or foundation problems. In that instance, a conventional offer might not be the best option.

3. Cash For Your Home

It can be quite attractive to sellers when someone offers cash for a home. That’s because there is no game of wait and see to gamble with and the transaction can take place much faster. Then again, they may ask for repairs to be completed at the seller’s expense, and a discount is generally expected.

Cash offers are great when you want an immediate sale. However, if you want to hold out for the highest offer, cash offers may not be for you.

4. Owner Finance

Since it can be difficult working with mortgage lenders, some buyers simply do not want to go through the headaches of dealing with a bank and paying high lender fees when purchasing a home. Even if they have good incomes and qualify for a mortgage, some prefer seeking owner financing. While such situations can be attractive for many sellers because this can create an additional stream of income, there are some drawbacks.

First, you will not have the immediate payout, and if you still owe on the property, you can find yourself in a tricky situation. Even though you won’t have to wait for a decision from a financial institution like you would with conventional lenders, you still might have to negotiate with the buyer about repairs and other issues.

Owner financing may be a great idea if you were already planning to invest the capital or you are in a hurry to complete the sale. Nevertheless, it can be a bad idea when you need the full amount of the sale right away.

5. Rent To Own

Rent to own deals begin with a lease on the property and include an option to buy it later. If you are looking to get top dollar for the home, but don’t need the cash for it right away, it can be a good plan to structure the lease as rent to own. However, if you are not sure that you can live up to the agreement, it might not be such a good way to go.

These are some of the most common ways that offer come in for homes. Each offer has its own benefits and its own drawbacks and can be best suited for all kinds of different needs.


Are you looking to sell your home fast? We buy houses in Buffalo. We buy as-is for cash, we cover the closing costs, and we close on your timeline. For more information contact us today at (716)-800-1414

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