Seller's Guide · Step 9 of 10

Reviewing Offers and Negotiating: How to Pick the Right Buyer

The highest price isn't always the best offer. In Texas, most offers come in on the Texas Real Estate Commission's residential contract, and the terms around the price matter as much as the number. I'll go through every offer with you line by line.

What to look at besides price

• Financing. Cash, conventional, FHA or VA, how much the buyer is putting down, and the strength of their pre-approval.
• Earnest money. How much the buyer deposits with the title company. More money down usually means a more committed buyer.
• Option period and fee. The buyer pays you an option fee for the right to back out for any reason during the option period. A shorter period and a larger fee are stronger for you.
• Appraisal. If the home appraises below the price, can the buyer cover the difference?
• Closing date and move-out. Does the timeline work for your move? If you need a few days after closing, ask about a seller's temporary lease.
• Requests. Help with closing costs, repairs or items the buyer wants to keep.
• Contingencies. Does the buyer need to sell another home first?

When you get more than one offer

I'll put each offer side by side so you can compare your estimated net, not just the price. We may ask all buyers for their highest and best offer by a deadline. You can accept one offer, counter one, or decline them all.

Counteroffers

A counteroffer can change the price, the closing date, the option period, or what you'll pay toward the buyer's costs. Everything is negotiable until both sides sign.

After the inspection

During the option period, most buyers have the home inspected. They may ask for repairs, a lower price or a credit at closing. You can agree, counter or decline. If you can't agree, the buyer can back out during the option period. A credit is often simpler than repairs. If you do make repairs, use licensed contractors where required and keep your receipts.