When a buyer makes an offer to purchase your home, I will contact you promptly. I will review it with you carefully, answer any of your questions, and assist you with negotiations. The written offer is important because it lays out all the terms of the proposed transaction and will become a binding contract if you sign it. The offer describes the property, states who pays for which closing costs, and specifies dates of closing and possession. Along with making the offer, the buyer will place earnest money with the escrow agent as a sign of good faith. The earnest money will be kept in an escrow account and applied to the buyer’s down payment or closing costs when the sale closes.
The offer may be subject to the buyer selling some property first, obtaining an inspection, approving of subdivision restrictions, or it may contain an option period of between 7-14 days. The buyer pays a agreed-upon option fee to you. They will usually receive it as a credit at closing, and most likely forfeit it if closing should not occur. As you might expect, I will give extra attention to these and other areas of the offer, and make sure you are comfortable with your alternatives.
In reviewing the offer, you have three options: accept, reject, or alter the offer. In helping you to make your decision, I will prepare a revised estimate of net proceeds because the terms and estimated closing costs may be quite different from earlier calculations. You are also encouraged to seek the advice of an attorney and a tax adviser.