Key takeout
Not all offers are equal – know what to question before you accept it. A weak deposit, excessive contingency, or lack of funds can derail your sales. Redfin Real Estate Agents can help you assess the strength of your buyers and avoid risky transactions.
Selling your home should be exciting, not stressful. However, not all offers are created equally. According to the National Association of Realtors, 11% of home sales encounter at least one delay, mostly related to funding and valuation issues. Knowing what to look for in the offer will save you time, money and frustration.
Here are seven red flags on the house offer that every seller should recognize.
1. Low money deposits
Serious money indicates that the buyer is serious. If the deposit is abnormally low or completely missing, it could mean that the buyer is not completely committed. Serious buyers usually beat 1% to 3% of the purchase price.
2. Virtual buyers who have never seen their home
Some buyers create offers without touring the property directly. This may seem harmless, but changing your mind after the examination can backfire. If a virtual buyer submits an offer, ask the agent how to protect him.
3. Home Sale Contingency
Home sale contingency means that the buyer must sell his property before purchasing his property. This can cause delays and uncertainties. If you are considering this type of offer, add a kickout clause and ask to stay in the market.
4. Unusually long test period
The standard test takes about a week. Buyers seeking extra time may test or stall the market for other reasons. Long windows mean they will increase the chances of leaving.
5. Weak or suspicious funding
Funding is the most common reason for transactions to collapse. A strong offer should include pre-approval letters from a reputable lender. Be careful if the buyer’s funds come from an unfamiliar lender that appears to be uncertain, or rely on selling another property.
6. Overcome the asking price without coverage of rating gaps
Offers that are much higher than your asking price may look attractive. However, if the house is not valued for its value, the transaction can collapse unless the buyer is willing to cover the cash gap.
7. Sloppy or incomplete documents
Details are important. Offers with missing signatures, ambiguous terms, or inconsistencies can indicate a lack of experience or lack of organization. A wrong contract can cause delays or cancel the transaction.
Bonus: Red flag on the seller that you should avoid
It’s not just a buyer. Sellers may lose a strong offer if their homes show red flags like mold, pests, strong smells, etc. If the price is too high, it can hurt opportunities and you will sit in the market and lose interest from the buyer.
Seller’s Checklist: Find Red Flags on Offer
Use this quick checklist before accepting your offer.
Are serious money deposits at least 1% to 3%? Did the buyer tour the house in person? Are there any unexpected situations in the home sale? Are there any kickout clauses? Is the test period reasonable, about 7 days? Does the buyer have pre-approved or verified cash funds? Does this offer include valuation gap coverage if there is the above list price? Are all documents completed, signed and consistent?
FAQ about the red flag of the house offer
What is the biggest red flag for a house offer?
Fundraising uncertainty. Without solid pre-approval or proof of funds, the transaction is at a higher risk of collapse.
Should I always reject the offer due to contingencies?
no. Standard contingencies such as inspections and evaluations are common. The key is to monitor buyers for unusual or excessive controls.
How can a Redfin real estate agent help me find the red flag?
Redfin agents are trained to evaluate offers, verify the strength of buyers, and guide you through negotiations.
Final Thoughts: Red Flag of Offer from the Seller’s Point of View
The best offers aren’t necessarily the best offers. By learning to recognize these red flags on your home offer, you can avoid delays, minimize risks, and choose buyers who may close. The Redfin agent can be guided step by step, so don’t miss out on any important details.
Explore more seller resources: How to sell a home with a real estate agent, what happens after a home valuation, a seller’s guide.
