Three Questions Sellers Should Ask Before Accepting an Offer
Receiving an offer is exciting, especially after preparing the property, scheduling showings, and waiting for the right buyer.
However, the highest purchase price is not always the best offer.
Before signing, sellers should look beyond the number at the top of the contract and consider the complete package. These three questions can help determine whether an offer is both financially worthwhile and likely to reach closing.
1. What Will I Actually Receive From This Offer?
The purchase price is only the starting point.
An offer may ask the seller to contribute toward the buyer’s transaction costs, pay for repairs, include personal property, provide a home warranty, or accept other expenses. These terms can substantially change the seller’s final proceeds.
A lower offer with fewer requested concessions may produce a better result than a higher offer with significant costs attached.
Before accepting, review a seller net sheet that estimates the mortgage payoff, closing expenses, taxes, agreed concessions, and other deductions. If you are comparing multiple offers, calculate the estimated proceeds for each one using the same information.
Ask:
What is my estimated net amount?
What costs is the buyer asking me to pay?
Is personal property included?
Could repairs or other obligations reduce my proceeds later?
Sellers should compare what they are likely to receive, not simply the advertised sales price.
2. How Strong Is the Buyer’s Ability to Close?
An accepted offer is valuable only if the buyer can complete the purchase.
Review whether the buyer is paying cash or obtaining financing. If financing is involved, consider the loan type, down payment, preapproval documentation, and any conditions that could affect approval.
A strong offer should also include meaningful earnest money and realistic timeframes for financing, inspections, appraisal, and closing.
Cash offers aren't automatically risk-free, and financed offers aren't automatically weak. The important question is whether the buyer has provided enough information to demonstrate readiness and commitment.
Ask:
Has the buyer provided acceptable proof of funds or loan approval?
Is the earnest money reasonable?
Does the financing appear appropriate for the property?
Is the offer dependent on the buyer selling another home?
Are the proposed deadlines realistic?
Even the cleanest-looking offer can carry risk if the buyer’s financial position hasn't been carefully reviewed.
3. Do the Terms Fit My Timeline and Priorities?
Price matters, but so do the dates and conditions.
A seller who has already purchased another home may prefer a quick closing. Another seller may need additional time to move, locate a replacement property, or coordinate an estate. An offer that doesn't fit those needs may create stress or add expense.
Review the proposed closing date, possession, inspection period, financing deadlines, appraisal terms, and any special conditions. Pay close attention to anything that gives the buyer additional opportunities to delay or terminate the contract.
Ask:
Does the closing date work for me?
When will the buyer take possession?
How long are the inspection and financing periods?
Are there unusual contingencies?
What happens if the appraisal is lower than the contract price?
Consider the Entire Offer
A good offer balances price, reasonable terms, financial strength, and a workable closing schedule.
Before accepting, slow down long enough to understand what the buyer is offering, what the buyer is requesting, and how much risk the contract places on you.
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