How to Tell a Good Offer From a Bad One

            Take a flexible approach to looking at any offer that comes your way.

            Review each offer in the following order:

• Earnest Money Deposit.  How much is it in relation to your asking price?  Is it a significant deposit to indicate a serious offer?
• Purchase Price.  How does the amount offered compare to your asking price and your private bottom line?
• Down payment.  Cash?  If not, why? Do they have a pre-approval letter from their lender?
• Terms.  Is it a first mortgage?  Are they requesting seller financing?  How do these terms affect your profits?
• Occupancy.  How soon do they want possession and does that affect you?
• Contingencies.  Are there any listed?  If so, what are they and how do they affect you?

In some cases you may want to have your real estate attorney look over the offer.  That's fine if you want to be safe and have him or her explain complex clauses and protect your position. Your Exit Realty agent should be able to explain most if not all the details of your offer.

Don't Hesitate to Ask Questions

            It's just like being back in school.  There's no such thing as a stupid question, particularly when your home and your most important investment are at stake.

            Your Exit Realty agent or broker is dedicated to helping you understand everything you are signing and dealing with. If you don't understand something you are looking at, feel free to probe your agent until you feel comfortable about it.

Don't immediately reject an offer without looking it over

Don't jump to conclusions even if you hear that an offer is substantially lower than your asking price.  The terms may make up for it, or vice versa.  And in any case, you can always make a counteroffer.

            Even if you decide you can't accept a particular offer, it's almost always best to present a counteroffer. This makes the first offer void and it is as if you are presenting a completely new offer to them in return.