Offers

A buyer makes an offer by submitting a written and signed offer to purchase, which will become the sales contract when endorsed, or ratified, by everyone's signature.

Contract Presentation

The selling broker registers the offer with their office and notifies the listing broker of the offer. The listing broker then arranges a contract presentation appointment with you and, in some areas, the selling broker. The buyer does not attend the presentation. Part of the presentation is determining that the buyer is qualified financially to make the purchase.

Should either the seller or buyer be located out of town, the contract is presented via telephone and confirmed later by fax.

A number of specific concerns are included in the presentation. After all, once the contract is signed, it becomes the binding guideline for the transaction. The offer will include, but is not limited to:

Date, name, and address of the buyer and seller, and the legal description of the property.

Amount of the earnest money deposit, which will be held in an escrow account by the broker, unless otherwise noted.

Sales price.

Size of the down payment, and how the remainder of the purchase price is to be financed. The offer should indicate the maximum interest rate the buyer is willing to pay, and the right to cancel without penalty if such financing proves unavailable.

Proposed settlement and occupancy date, and daily rent provision for post-settlement occupancy if the seller cannot vacate and becomes the temporary tenant of the buyer.

Contingencies, if any, such as satisfactory review by attorney, structural inspection, home appraisal, or sale of the buyer's present house.
Other important provisions, including a list of items that convey with the sale, stipulation that title must be insured, and who is to pay various settlement costs.

Net Sheet

Taken all together, this offer is reduced to dollars and cents on a sample net sheet, similar to the exercise during the listing appointment. The estimated outcome is determined, which allows you to consider the bottom line.

Contract Decisions

A decision on an offer should be made at presentation, if possible. You as the home seller have three possible options:

Accept the offer as written.

Make a counter offer on unacceptable aspects. Counters are written and initialed in the margin of the contract or in addendum. A purchase offer with counters is not a ratified contract until the buyer accepts and initials the counters. Buyers can withdraw, accept or counter the counter offer.

Reject the offer, if it is totally unacceptable. Outright rejection, without a counter, should be the last resort.

A contract exists when all terms including changes are ratified by initials of all principals. When the contingencies are satisfied, the contract becomes enforceable. Multiple Offers

All offers registered will be presented to you in the order registered. You should hear each offer completely and ask questions. No action is necessary until all offers are heard. If more than one offer is accepted or countered, an order of precedence must be established, such as primary, first backup, second backup. Be careful not to sell the home twice.