Handling Offers

What Happens When You Get an Offer?

Intro: The Offer

After your home is officially on the market and an offer is received, I will present the offer immediately for your review. I will then assist you in weighing the pros and cons so you can make an informed decision and respond to the offer in a timely manner.

• Overview of a Written Offer
• (via the "Offer to Buy and Sell Real Estate")

• Offer price
• The property's legal description
• Earnest money made payable to the title company. The title company acts as your scrivener during the transaction and is a neutral party to hold your earnest money. Earnest money is typically in the form of a personal check (but can also be cash, promissory note or cashier's check, with lender-owned properties usually requiring the latter) and the purpose is to show "consideration," which is required to make the contract legally binding. Earnest money is returned to a Buyer in a rejected offer.
• Financing arrangements, terms and conditions
• Fees noted and whether Buyer pays, Seller pays, or it is shared expense
• Contingencies, which are conditions that must be satisfied or the contract may be terminated. Typical Buyer contingencies are inspection, appraisal, title, and loan conditions. Other contingencies may also be spelled out in the "Additional Provisions" section of the contract.
• Dates and deadlines
• Inclusions like fixtures (attached to the property) or personal property such as appliances, furniture, planters, etc., that the purchaser wants to stay with the home.
• Settlement date and place and the method title will be conveyed by.

Choices

Following your review of the Contract to Buy and Sell Real Estate, you will have several choices. (Also keep in mind that all parties need to have the Contract in writing or it is not enforceable):

• Accept
• Reject
• Counter - Return a written counter to the Buyer or Buyer's agent, which may include any or all of the following: price change, financing terms, making repairs, closing costs, time of occupancy.

Once terms are mutually agreed to and signed by both parties, the offer, when accompanied with the earnest money, becomes a "legally executable contract".