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Home Selling: We Received an Offer

Posted by Sarah Steen on March 30, 2020
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picture of person signing a contract

The buyer’s agent will usually give our team a call before submitting an offer. They will want to find out what you are looking for in terms of closing time or to see if the buyer’s closing requirements match up with yours. They could also have other questions or need confirmation of facts about the house that we will answer so that the agent can make an offer.

Click here to download the Home Selling Guide

How are offers submitted?

Just like all previous documents for selling your home, you will be able to receive and digitally sign documents via our contracts software system (see below for detailed information). Keep in mind that it is important that you speak with our team before signing anything, especially during a time period when we might receive multiple offers. There may be times we opt to send you an un-signable offer that is just for review.

Our team will inspect the offer first, make notes, and then take a look at the lender letter. We will give the lender a call to see how far in the approval process the buyers have come and how qualified they are.

Either way, we will discuss one or multiple offers to make sure the offer is exactly what you want to agree on. Most times there will be a counter proposal. The changes in the counter might be fairly small or significant. Believe it or not, we have written an offer from the seller TO the buyer to ensure we have provided the perfect offer for the seller. It was accepted.

Related Reading:
Steps to Sell a House
Pricing Your Home to Sell

Reviewing your offer

The Colorado Real Estate “Contract To Buy And Sell” is usually 18 pages long. It is very clear in its formulation even though it is buyer focused.

Here are a few highlights to pay attention to: 

  • 2.5 and 2.6 Inclusions and Exclusions:
    Are all inclusions and exclusions acceptable? If you have a negotiable item in your listing, there is a good chance you’ll find it in the inclusions. This isn’t a problem if you are ok with it. If not, we’ll need to change that in your counter proposal.
  • 3.1 Dates and Deadlines
    This is a detailed list of when items have to be delivered, tasks performed, when buyers may object and sellers may provide a resolution to those objections. Don’t worry if this seems intimidating—our team is here for you every step of the way! Most importantly, you’ll see a date by which the buyer wants to close and a deadline to agree or reply to this offer.The paragraphs noted in each line are referenced in the lower part of the offer and described in detail. Most times you’ll see a specific date here, but at other times you’ll see an “MEC”, which stands for Mutually Executed Contract, and is the date both parties agree to the contract (date of last signatures).
  • 4.1 Price and Terms
    The first thing that most sellers want to see is the offer price. You might not like what you see, depending on the current market situation.  If you’re not satisfied with the offer price, think about what you’d like to offer to the buyer.  This section will also show how much the down payment is, and potentially how qualified the buyer is for their loan.
  • 4.2 Sellers Concessions
    Make sure to deduct this number from the offer price to get a net offer.
  • 4.5.3 Loan Limitations
    Which loan is the buyer intending to use? Expect to see 1-2 choices checked here.
  • 10.7 Conditional Upon Sale of Property
    Does the financing of this home purchase depend on the sale of another home? We might need to get more information from the buyer’s agent in order for your to make a decision about this.
  • 30 Additional Provisions
    This is where buyers’ agents get creative to potentially “nibble” from the sales price. They might request another home warranty (about $500) or other requirements to be fulfilled by the seller.
  • 31.1 Documents part of this contract
    Agents tend to add office required documents to be signed like a mold disclosure or other addenda. We recommend not signing anything that is not state required, so we like to ensure that we remove any unnecessary signatures.

Related Reading: Which Offer Should You Choose

Note: We are based in Colorado Springs, Colorado. If you are planning to sell your house in a different area, we can match you with an excellent local agent. Give us a call (719-321-0800) or email us (susanna@co-regroup.com) for a referral.

Details about our contract software: CTM eContracts

Our contract software is in the cloud and that enables you to be at any computer or electronic device to review your offer with me.

  • As previously mentioned, you will receive an email with a link to click that will display your offer (or contract) in a new window.
  • Remember not to sign anything before discussing it with our team.
  • When you are satisfied with the offer, you may go ahead and sign it (see video below for instructions on exactly how to do this).
  • The contract is locked as soon as it is signed. The only way to change anything is by rewriting/copying the locked contract, making revisions and re-signing it.
  • Once we are under contract, I recommend saving all documents via the PDF icon behind the link.

The Counter Proposal

After we have reviewed all details and everything in the contract is acceptable to you, you can digitally sign the offer and it turns into the official contract.

If there are items to negotiate, I will draft a counter proposal that details a list of any items we have discussed.

A few things can happen now:

  • The counter is accepted and we have a contract
  • We might receive another counter offer
  • We could get a phone call from the buyers agents to see how this deal can be put together

We are under contract once we come to an agreement and all parties have signed!

Congratulations!

We Couldn’t Come to an Agreement

It happens. This can be disappointing, but it’s good to work with buyers who appreciate your home. Try not to be discouraged. We will continue to market your home and find a buyer. Remember, it takes just one buyer!

Back Up Offers

We have achieved your primary goal to get your home under contract, but we might continue to see additional offers for your home. These offers will be considered backup offers. With special clauses, these backup offers will slide into the place of the primary contract as soon as it terminates.

This is particularly beneficial for the seller in the event that the buyers have extraordinary requests for repairs.

Our team is always here to help and answer questions. Email us (susanna@co-regroup.com) or call 719-321-0800.