Receiving an Offer
An offer is a legally binding contract. It specifies an acceptable set of terms and conditions under which you agree to sell your property. Work with your REALTOR® to make an offer review plan including when you will review offers and how you will handle multiple offers. Identify your ideal terms ahead of time and notify your REALTOR® of terms that are important to you.
TYPICAL OFFER COMPONENTS
Purchase Price — The amount of money to be delivered to the seller in return for the deed
Earnest Money Deposit — Typically broken up into two separate deposits due at offer acceptance and Purchase & Sale (P&S) signing, respectively
Offer Expiration Date & Time — How long the offer is valid (e.g., 48 hours)
Purchase & Sale Signing Date — Specifies the date and time by which the P&S is to be signed by all parties
Closing Date — Specifies the date and time by which the deed transfers from the seller to the buyer
Escrow Agent — Specifies which entity holds deposits
Home Inspection Contingency — Specifies the timeframe and terms for inspections
Financing Contingency — Specifies the loan amount and date by which financing must be obtained
Inclusions / Exclusions — Lists which items stay and which don’t
Other Contingencies as needed — E.g., Sale of Buyer’s home, Subject to passing Private Septic Title 5 Inspection Report
Once you receive an offer, you can either accept it exactly as written, reject it, or issue a counter offer. It is possible to go back and forth with a buyer more than once before settling on mutually acceptable terms. Once both parties sign the offer, it becomes a legally binding contract.
If you are in receipt of multiple offers, your REALTOR® will help you to analyze each offer and determine which one is best aligned with your goals for the sale.
TIPS FOR SUCCESSFUL NEGOTIATIONS
Get down to business. Separate your emotions from the transaction. Focus on your long term wants and needs and avoid getting hung up on low impact terms.
Know what you want. Identify your ideal terms ahead of time. Know where you are and are NOT willing to compromise.
Think creatively. There may be multiple ways to achieve a desired outcome. Are there other factors you can lay on the table for discussion?
Put yourself in their shoes. Stay one step ahead by anticipating how the other party is approaching negotiations.
