5 Tips for Evaluating an Offer

1. Find the Expiration Date

There should be an expiration date and possibly time in your offer that you need to be aware of.  Most buyers are considerate and at least give you enough time to sleep on it.  Use this time to think it over.  If you are given a short deadline, ask why.  Often times if a buyer thinks someone else is interested, they may shorten the deadline to get their offer accepted first.

2. Research Your Costs.

Collect the principal balance on your mortgage, and ask a closing office to help you estimate what closing and escrow costs you can expect.  These numbers are important to have so you can tell if you will walk away from closing with a check or have to bring a checkbook to closing.

3. Do The Math.

In order to know what the bottom line is on your offer, you will have to do some math.  The number that appears to be the price the buyer is offering isn’t the bottom line.  You may need to subtract some things.  Is the buyer asking you to pay closing costs, make repairs, pay their agent’s commission?  Add these things up and subtract it from the number they are offering.  The answer will be the REAL offer that is being made.

4. Alert Other Interested Parties

Multiple simultaneous offers is your best case scenario.  If you don’t appear to have that, tell other interested parties that you are receiving an offer so if they want to put their hat in the ring, they know to act quickly.

5. Utilize Experts

Real estate transactions are often the largest ones you’ll have in your life.  Don’t let emotions or the buyer’s agent rush you through it without consulting with qualified advisors.  If you belong to a group legal plan, fax the offer to them for review.  If an agent is helping you buy your next home, ask if they will look over any offers you receive on the one you are selling.