What this step involves
Price is only one dimension of an offer. Contingencies, financing type, closing timeline, and earnest money all affect how likely a deal is to close — and how much you might net. Knowing what you're reading is critical.
How to do it yourself
DIY Path
- Review the offer price and calculate net proceeds after your flat-fee services, taxes, and any buyer agent commission
- Check contingencies: inspection, financing, appraisal. Each is a potential deal exit for the buyer.
- Evaluate the buyer's financing: cash > conventional > FHA/VA (each has different closing certainty)
- Look at closing date — does it work for your timeline?
- Check earnest money deposit: 1–2% of price is typical. Less = less committed buyer.
Common pitfalls
What goes wrong
- Accepting the highest offer without reading contingencies: A 15-contingency offer at list price can be worse than a clean offer $10K lower.
- Ignoring pre-approval letters: Ask for pre-approval, not just pre-qualification. They're different.
- Disclosing other offers prematurely: This can weaken your negotiating position.