Sellers - Focus on the bottom line

So your agent calls and says that he/she has received an offer to purchase your home. What are your options? More importantly, what is your best option? First, your agent is required by law to prepare what is typically called a net proceeds estimate, or seller net sheet, that shows you what your bottom line with likely be. Your decision on which of these options to choose should be based on a thorough understanding of this net proceeds estimate. Say it with me now...Focus on the bottom line!

Accepting the offer

If you can live with the numbers, then this is absolutely the best option. As I mentioned before, focus on the bottom line of the net proceeds estimate your agent prepares for you. An offer asking you to pay closing costs and down payment assistance may net you as much as a cash offer, depending on how the numbers work. Don't get caught up in everything the buyer is asking for. Ask yourself, "Is this bottom line number a number we can live with?"

Making a counter offer

If the offer is not something you can live with, then a counter offer to the buyer might be in order. Your best strategy should be to change as few items as possible in your counter offer. Give the buyer, based on their original offer, everything you can. It makes everything easier when you adjust the price and leave everything else the same. That is not to say that nothing should be changed except the price. This is where your agent earns part of their commission, by advising you and helping you formulate a good counter offer.

Turning down the offer

Probably the least advisable of the three choices, declining an offer outright can work against you. You have a ready, willing, and presumably able buyer that likes your house enough to make an offer. By summarily rejecting their offer, you can completely turn them off and send them to your competition. Even if the offer is ridiculously low, make a full price counter. Doing so shows them that you want to sell, but they need to make a more reasonable offer.

Offers are too hard to come by, especially in the current market. Focusing on getting your house sold at terms and conditions you can live with should be yours and your agents top priority.