Don’t Get Blindsided! 6 Hidden Offer Terms Every Seller Must Know to Close the Deal

When receiving an offer on your home, understanding its terms goes beyond price alone. Here are six offer terms every seller should understand:

Purchase Price

Price is always an important consideration; however, the highest offer may not always be best in terms of affordability or benefits to long-term planning. Be mindful to factor in elements like flexibility, contingencies and buyer commitment when assessing multiple offers.

Financing Type

Cash offers are the least risky because there's no lender involved, reducing hurdles. If a buyer plans to finance, make sure they're pre-approved, and remember that conventional loans typically close quicker than FHA or VA loans - this information can help ensure no delays occur later on.

Closing Timeline

When selling quickly, a quick closing may seem ideal; but if you need extra time before moving out of the home, consider opting for an extended closing or rent-back agreement to allow yourself more breathing room. Discuss this timeline with your agent so it fits with your plans without creating stress.

Contingencies 

Contingencies are conditions buyers must fulfill for a sale to proceed, such as financing, appraisal or inspection. Fewer contingencies result in stronger offers; however, you may negotiate shorter contingency periods so the process moves smoothly. Be wary of potential risks involved with eliminating or reducing contingencies.

Earnest Money Deposit

When purchasing real estate, buyers place down an earnest money deposit as proof that they're serious. A larger deposit indicates commitment; but be mindful of its conditions for return in case the buyer backs out for any valid reason. You should understand how earnest money deposits will be handled if this occurs.

Requests by Buyers

When responding to buyer requests for repairs or closing cost assistance, this may reduce the net proceeds you expect from selling the home. Carefully evaluate these requests against your offer price before determining if negotiating repairs could speed up closing times and smoothen out the sale process.

Examine an offer holistically: price, terms and contingencies are all crucial considerations when reviewing an offer. 

With expert industry experience as a Corona Realtor, Diana Renee offers unparalleled insights into the local market, and can guide you through this process and help ensure you find a great deal when selling your home.