You Got an Offer on Your Home. What Happens Next?
Getting an offer feels like the moment when the question becomes, “Is this a good offer?”
I would slow that question down.
Price matters. But so do the dollars you keep, the buyer's contingencies, inspection rights, financing, appraisal, closing date and everything else the buyer is asking you to agree to.
At This Milestone
What is happening
A buyer has put their proposed price, terms, deadlines and contingencies into writing.
What you need to do
Review the entire offer, not just the price. Understand what you will likely keep, what the buyer can still do and what you are agreeing to do.
What I am doing
Breaking the offer into price, costs, contingencies, deadlines and risk so you can see the decision instead of guessing from the top number.
Is the Highest Offer Always the Best Offer?
No.
The highest price can still leave you with less money or more risk.
A slightly lower offer may have fewer seller costs, stronger financing, more earnest money, fewer contingencies or a closing date that works better for you.
Start with the whole offer.
Price tells you what the buyer is offering to pay.
The rest of the contract tells you how likely you are to get there and what it may cost you along the way.
What I Look at Before You Decide
Price and Seller Net
Start with the purchase price, then subtract the expenses the offer may create for you.
Earnest Money
How much is the buyer depositing, when is it due and what happens to that money under the contract if the transaction does not close?
Financing
Is the buyer paying cash, using conventional financing, VA, FHA or another loan? What financing deadlines and contingencies apply?
Inspection
How long does the buyer have to inspect the property, and what rights does the signed contract give the buyer during that period?
Appraisal
Does the buyer have appraisal protection? What happens if the lender's appraisal does not support the contract price?
Seller Costs
Is the buyer requesting closing-cost money, repairs, a home warranty, title-related costs or other seller-paid expenses?
Buyer-Broker Compensation
If the buyer is requesting seller-paid buyer-broker compensation, treat it as a separate negotiable transaction expense and include it in the seller net.
Closing and Possession
Does the proposed closing date work for your move? When does the buyer receive possession and the keys?
Offer Price Is Not the Same as the Money You Keep
Two buyers can offer the same price and leave you with different amounts of money.
Simple example
Buyer A offers $500,000 and asks you to pay $15,000 toward the buyer's closing costs.
Buyer B offers $493,000 and asks for no closing-cost contribution.
Before considering any other differences, Buyer B leaves the seller $8,000 more from the purchase price.
That does not automatically make Buyer B the better offer either.
Financing, inspection rights, appraisal protection, deadlines and other terms still matter.
I Do Not Tell You an Offer Is “Good” or “Bad” and Expect You to Trust Me
I want you to understand the offer well enough to make the decision yourself.
Strengths
- Strong price.
- Meaningful earnest money.
- Strong financing or verified cash.
- Reasonable inspection period.
- Limited seller concessions.
- Closing date that works for you.
- Few complicated contingencies.
Weaknesses or Risks
- Large seller-paid concessions.
- Weak or uncertain financing.
- Long contingency periods.
- Appraisal exposure.
- Sale-of-another-home contingency.
- Low earnest money.
- Terms that make closing less predictable.
A Cash Offer Is Not Automatically Better
Cash can remove financing and lender-appraisal risk.
That can make a cash offer simpler.
But a cash buyer can still offer less money, request a long inspection period, ask for concessions or include other terms that matter.
Look at the actual offer.
Do not pay a buyer a huge discount simply because the word “cash” sounds safer.
Every Offer Comes With Deadlines
An offer may have an expiration time for your response.
If you accept and the contract becomes effective, additional deadlines begin.
Deposit
The buyer may be required to deliver earnest money within a stated period.
Inspection
The buyer's inspection period may begin running from the Effective Date.
Financing and Closing
Loan, appraisal, title and closing deadlines can all affect the transaction.
You Do Not Have to Choose Between Only Yes and No
Accept
If the price, terms, costs and risk work for you, you can accept the offer as written.
Counter
You can propose different price, costs, deadlines, deposits, closing terms or other changes.
Decline
If the offer does not work for you and you do not want to counter, you can choose not to accept it.
A counteroffer changes the negotiation.
A counteroffer generally rejects the original offer and proposes different terms. The buyer can accept the counter, reject it or continue negotiating.
Put the Offers Side by Side
Multiple offers can make the highest price look like the obvious choice.
Instead, compare the offers across the same categories.
- Purchase price.
- Estimated seller net.
- Earnest money.
- Financing strength.
- Inspection period.
- Appraisal protection.
- Seller concessions.
- Buyer-broker compensation requested from seller.
- Closing date.
- Possession.
- Other contingencies.
The Offer Has to Work for Your Sale, Not for an Average Seller
A seller in Niceville who needs time for a PCS move may value a different closing date than a vacant-home seller in Fort Walton Beach.
A Shalimar seller may have different timing, possession or proceeds needs than another homeowner selling a similar house.
That is why I do not rank offers from a generic checklist alone.
The best offer is the offer that best fits your actual goals after we understand the dollars and the risk.
Once the Offer Becomes a Contract, the Conversation Changes
Before acceptance, you are negotiating whether to sell to this buyer.
After the contract becomes effective, you are managing a transaction with deadlines and obligations.
The Buyer Starts Performing
Earnest money, inspections, loan work, insurance, appraisal and title work may begin.
The Seller Has Work Too
We track the contract, respond to notices, handle inspection and repair issues, prepare for appraisal and keep the transaction moving toward closing.
Next Seller Milestone: The Home Inspector Is Coming
Once you are under contract, the buyer may begin the inspection process quickly.
Your next job is not to start repairing everything you can think of.
Make the important areas accessible, make a plan for pets and let the buyer perform the inspection allowed by the contract.
You Are Here: You Got an Offer
Selling becomes easier to understand when you know what is happening now, what decision is in front of you and what comes next.
You Got an Offer
Previous Milestone: Listing Goes Live & Showings
Understand showing requests, buyer access, feedback and what the market is telling us once your listing is active.
Listing Live & Showings →Next Milestone: Home Inspection
Make the property accessible, make a plan for pets and understand what the buyer's inspection does and does not mean.
Home Inspection Checklist →Questions Sellers Ask When an Offer Arrives
Is the highest offer always the best offer?
No. Seller costs, financing, inspection rights, appraisal protection, closing date, earnest money and other contingencies can make a lower offer financially stronger or more likely to close.
Should I accept a cash offer over a financed offer?
Not automatically. Cash can remove financing and lender-appraisal risk, but price, inspection rights, concessions, deadlines and other terms still matter.
What is earnest money?
Earnest money is a buyer deposit held according to the contract. The amount, deadline and circumstances that determine what happens to the deposit should be reviewed as part of the offer.
Can I counter only part of an offer?
A counteroffer can propose changes to selected terms such as price, closing date, concessions, earnest money or other provisions. The buyer can then accept, reject or continue negotiating.
Should I worry about the appraisal when reviewing the offer?
Yes, when the buyer is financing the purchase or the contract contains appraisal protection. A high contract price can create appraisal risk if the available market evidence does not support it.
Does a buyer's repair request start when I accept the offer?
No. The buyer normally performs inspections under the signed contract first. What the inspector observes, what the buyer later requests and what the contract requires are separate questions.
Can the seller pay the buyer's broker?
Seller-paid buyer-broker compensation can be negotiated as part of the transaction. If requested, it should be shown separately so the seller understands the dollar cost and how it affects the seller net.
Go Deeper Where You Need To
Seller Net Sheet
Turn the offer price into an estimate of the money you may actually keep.
Seller Net Sheet →Negotiating the Offer
Understand the reasoning behind a counteroffer instead of simply splitting the difference.
Negotiating an Offer →Price Is Only the First Number in the Offer
We look at what you will likely keep.
We look at what the buyer can still do.
We look at the deadlines and the risk.
Then you decide whether accepting, countering or declining makes sense for you.
Important Notes
Every offer is different. The purchase contract, completed blanks, riders, addenda, financing terms, inspection language, deadlines and additional terms determine the rights and obligations in a specific transaction.
All brokerage compensation is negotiable. Any seller-authorized buyer-broker compensation should be treated separately from Uber Realty's listing compensation and from other seller transaction costs.
This page provides general real estate information for home sellers in Niceville, Shalimar and Fort Walton Beach. It is not legal, tax, lending, appraisal or title advice. When a specific contract issue requires legal interpretation, a Florida real estate attorney should be consulted.
Jim Whatley, Broker/Owner • Uber Realty LLC • 850-499-2940 • jim@uberrealty.com
Florida Broker License BK3174026 • Florida Brokerage License CQ1038333 • Equal Housing Opportunity