This is such an exciting thing to say to a Home Seller! All the hard work has paid off.
As a listing agent, the first thing I do is verify all the information on the offer. The source of funds for the deposit and down payment should be a part of the offer package that the Buyer’s agent has sent over. A letter of approval from a bank or direct lender should also be in the offer package. A call to the lender will confirm the ability of the Buyer to purchase the home. The lender has verified the Buyer’s funds and FICO scores and is willing to give a loan to the Buyer based on the information they have obtained.
With the Buyer’s qualifications verified the offer becomes valid. The next thing to check are the terms of the offer. How much is the Earnest Money Deposit (EMD)? 3-5% of the sales price is acceptable. The length of escrow is important – 30 to 45 days is the most common. Does the Buyer want the Seller to contribute to the Buyer’s closing costs? Does the Buyer want a termite inspection and clearance? What other reports or services is the Buyer asking the Seller to contribute? And of course, what is the dollar amount offered?
Once the offer is reviewed by the listing agent, a net sheet can be prepared. The net sheet tells the Seller what amount of money they will walk away with from the sale of their home to this Buyer’s offer. After all this information has been gathered, a meeting as soon as possible between the Sellers and the listing agent is suggested. You can strategize with your Realtor and decide if the offer is good enough as it is or if you want to counter offer any of the terms of the Buyer’s offer. If the offer is not quite what you had hoped for in terms of dollar amount, length of escrow, etc. don’t fret – Counter offer.
On the other hand, you might have several offers to review. Now that is a nice problem to have. You might want to pick the offer that is the highest dollar amount – but will it appraise at that amount? Maybe you were home when one of the Buyers toured your home and you have a “gut” feeling that they are the right people to buy your home, then go with it.
