Accepting An Offer

When You Receive An “Offer To Purchase” You Have Three Options: Accept The Offer As It Stands, Reject The Offer, Or Make An Offer To The Buyer (Commonly Called A Counter-Offer).

Presentation of the Offer: When you have an interested buyer, they submit a written and signed offer to purchase, which becomes the sales contract when ratified by everyone's signature. Once you and the buyer sign the paper, you are both bound by the contract conditions.

The “presentation of the offer” begins when the agent working with the buyer notifies the listing agent of the offer to purchase. The listing agent then presents the offer to the sellers. In some situations, the buyer agent may also request to be present when the offer is given to the seller, but this is not a common practice in North Carolina . The buyers are usually not present.

Sometimes, more that one offer is made on the house at the same time. When that happens, it is best to consider the offers at the same time, though that is often not possible. A reply is made to all concerned parties as promptly as possible because buyers are in the mood to buy when they make an offer but moods change.

Of course, an important factor to consider when an offer is received is whether or not the buyer can afford your home. A prequalification letter from a certified lender normally accompanies an offer and we will request such documentation if not submitted voluntarily.

Content of the Offer: When an offer is submitted, a number of concerns must be considered. Remember, once the offer is signed it becomes a binding contract. A copy of a contract should be reviewed with you when you list your home to allow you to be familiar with the form prior to receiving an offer. The offer to purchase includes:

• Date, the name of the buyer ad seller, and the legal description of the property.
• Amount of the earnest money deposit which will be placed in a special escrow account by the listing broker.
• Sales Price
• Size of down payment, and how the remainder of the purchase price will be financed.
• The proposed closing date and occupancy dates
• A listing of contingencies, or happenings, that must occur before the sale can take place. Examples include structural inspections, appraisal, or contingency for sale of buyer's present home. Though often omitted, a time limit should be imposed on all contingencies.
• A list of items that will convey with the sale and who is going to pay various settlement costs.
• Your signature and the signature of the buyer.

Your Contract Options: When you receive an “offer to purchase” you have three options; you can accept the offer as it stands, reject the offer, or make a counter offer which is legally a new offer, by you, to the buyer. There are pros and cons to each which are discussed briefly here. We can help you evaluate the offer and decide which option to take.

Accepting An Offer

One option is to say yes to the offer and accept it as it stands without any changes. We can assist you in evaluating the offer, but if you are doubtful about the terms, you can consult an attorney to review the contract before accepting the offer. Just remember, change anything at all and it becomes a new offer that the buyers can refuse. There are no ‘take backs' and once an offer has been altered or refused, you can not change your mind and accept a previous offer… it no longer exists!

Refusing An Offer

Another option is to refuse an offer. Many times it seems that the seller may reject the first offer believing many more will follow for much more money only to find out the first offer was the best. It could be that the first offer was extremely low and out of the question. The important thing here is not to take the offer personally. Try not to let your emotions get in the way of what needs to be done. After all, when you purchased your home your goal was to get the best possible deal… that is the same thought that the potential buyer has now.

Making A Counter-Offer to the Buyer or Specifying what you will accept

Once you have rejected the buyer's offer, you can make an offer to the buyer, accepting some of their terms, and changing some of the terms to terms more acceptable to you. The buyer now has the same two options; accept you offer or reject it. If the buyer rejects your offer, they can make a new offer to you. Before you reject and offer, listen to the advice of your sales agent. Sometimes the first offer, although not exactly to your liking, turns out to be the best offer you will receive. A valid contract only exists when both parties have agreed upon all details.

In the case of multiple offers when the terms do not meet your needs, we (with your permission), can outline specific terms that you will be willing to accept if they are received in a new offer from a buyer. As long as the same information is shared with all buyers, the Real Estate Commission will allow such information to be shared. Making a counter offer is difficult in such situations since more than one buyer may be willing to accept your counter, yet you only have one home to sell.

A Backup Contract: If a prospective buyer is willing to wait to see if your first contract falls through, then that buyer may offer what is called a backup contract. The back-up contract is contingent on the nonperformance of the first contact. It is rare that the first contract does not go through, but in those circumstances, you may accept a backup contract.

Staying on Track: Real estate contracts provide a series of deadlines for both buyer and seller. Keeping this series of events on schedule ensures a timely and successful close of the transaction. Upon acceptance of an offer, we will give you a copy of the timeline we will be using to track the transaction to keep you informed what to expect next.