Reading an offer: price is one line of many

Certainty first

An offer is a price plus a probability of closing. Cash with proof of funds and no contingencies is near certain. A financed offer depends on the loan and often the appraisal. An offer contingent on the buyer selling their current home depends on a sale you cannot see. Weigh price against how likely you are to actually receive it.

The terms that matter

• Earnest money: what the buyer risks if they walk. One percent or more shows commitment.
• Due diligence or inspection period: how long the buyer can cancel for any reason (North Carolina) or based on inspection (South Carolina). Shorter is better for you.
• Appraisal contingency: if the appraisal comes in low, the buyer can renegotiate or leave unless they waive it or cover a gap.
• Financing contingency and pre-approval: ask for the lender's letter.
• Closing date: does it fit your move? Every extra month costs a mortgage payment.
• Seller credits: money back to the buyer at closing reduces your net exactly like a lower price.

Compare net, not price

Run each offer through a net sheet: price less credits, less any buyer-agent compensation you agreed to, less the same closing costs. Two offers $5,000 apart can net the same once one asks for a credit and the other does not.

Responding

You can accept, decline, or counter. A counter should change only what needs changing and give a deadline. On the Managed package the broker reads each offer and advises before you respond; on every package the offer form gives you a summary and a rough net.