ACCEPTING AN OFFER

Your home is up for sale and you’ve received an offer. Should you accept it? Knowing when to accept an offer on your home is a crucial part of the selling process. Here are a five tips to help give you the confidence to know when to accept an offer, reject it or make a counter-offer:

Review the bidding price
Unless there is a hot prospect looming on the horizon, most real estate agents will suggest accepting an offer if it is within three to five percent of your asking price. Be sure to also take into consideration the buyer’s contingencies – they may only want to buy your home pending its inspection, the sale of their house or other conditions such as repairs or inclusion of appliances. You may want to negotiate these points by presenting a counter-offer.

Determine the buyer’s ability to pay
A lender qualification letter will reveal if the buyer has the funds to make monthly mortgage payments.

Carefully review any seller-binding stipulations in the contract
Pay special attention to escape clauses that allow the buyer to cancel the deal and walk away.

Put all agreements between you and the buyer in writing
The purchase agreement should state any conditions and agreements such as inclusion of the refrigerator or repairs to the home; the maximum amount you’ve agreed to pay for repairs should also be included.

An accepted offer becomes a binding contract
There is no way to change your mind without both the buyer and seller agreeing to all changes. Be sure you have read the entire Offer To Purchase document and that you understand all the clauses. If you are in doubt, have your lawyer review an offer before you sign your acceptance.