4. Choosing The Right Offer

First you want to sit down with your agent and review the offer. It is important that you understand the terms and conditions that the Buyer is requesting. Do they plan to do a home inspection? What are the financial terms? Have they been pre-qualified by a lender? What kind of disclosures are they requesting? Does the offer price meet your needs?

Once you understand the terms of the buyer you have 3 choices. Accept the offer, modify (Counter-Offer) the offer, or reject the offer. Your REALTOR will help you in your decision by evaluating your closing cost and what you can expect for net proceeds based on what you decide. If and when you agree to all the buyers terms, you sign the offer and send it back to the Buyers agent. At this point the offer is fully executed and your home is now "Sale Pending".

Once both the Buyer and Seller have agreed to sales terms, both parties must perform to meet their obligation for the contract. Most of the responsibility does fall on the Buyer. The Buyer must obtain financing; line up home inspections, termite inspections, property survey, appraisals, and secure home owners insurance. The Seller is responsible for selecting the title company and providing information to them that will show clear title and any mortgage information that will need to be paid off at the closing of this property. It is important for both parties to follow all the time lines specified in the contract. Failure to perform may jeopardize the sale of your home and could result in loss of escrow or other financial penalties. If you are unsure of any language stated in a sales contract, seek legal advice.