Review & Negotiate Offers

Step 8: Evaluate offers and negotiate best terms

The Art of Offer Evaluation

Receiving an offer is exciting, but the highest price isn't always the best offer. Smart sellers evaluate the complete package - price, terms, timeline, and buyer qualifications. Your agent's negotiation skills can often increase your net proceeds by thousands of dollars.

What Matters Most

1

Net Proceeds

Your actual take-home after all costs and concessions

2

Buyer Qualification

Strength of financing and ability to close

3

Closing Timeline

Alignment with your moving and buying needs

4

Contingencies

Conditions that could derail the sale

Evaluating Offer Components

Look beyond the purchase price to understand the true value of each offer.

💰 Financial Terms

Purchase Price

The headline number, but not the only consideration

Consider: How close to asking price, market comparables, room for negotiation

Down Payment

Higher down payments indicate stronger buyers

Prefer: 20%+ conventional loans over 3-5% FHA/VA loans

Earnest Money

Shows buyer's commitment to the transaction

Expect: 1-3% of purchase price in Tulsa market

Closing Costs

Seller concessions reduce your net proceeds

Calculate: True net after all seller-paid costs

📋 Contingencies

Financing Contingency

Buyer must secure approved loan

Timeline: 21-30 days typical, shorter is better

Inspection Contingency

Buyer can request repairs or cancel

Timeline: 7-10 days typical, negotiate repair limits

Appraisal Contingency

Home must appraise at purchase price

Risk: Higher in competitive markets with escalating prices

Sale of Buyer's Home

Buyer must sell current home first

Caution: Adds uncertainty and delays

Buyer Qualification Assessment

A qualified buyer is more important than a high offer that falls through.

🟢 Strong Buyer

Indicators:

  • Pre-approval letter from reputable lender
  • 20%+ down payment
  • Stable employment history
  • Debt-to-income ratio under 36%
  • Cash reserves for closing
Strategy: Accept competitive offers quickly

🟡 Moderate Buyer

Indicators:

  • Pre-approval with conditions
  • 5-19% down payment
  • Recent job change or gaps
  • DTI ratio 36-43%
  • Limited cash reserves
Strategy: Request additional documentation, shorter contingencies

🔴 Weak Buyer

Red Flags:

  • Pre-qualification only (not pre-approval)
  • Minimal down payment (3-5%)
  • Credit score concerns
  • DTI ratio over 43%
  • First-time homebuyer with no reserves
Strategy: Proceed cautiously, keep backup offers

Multiple Offer Situations

When you receive multiple offers, strategic handling can maximize your outcome.

Step 1: Initial Review

  • Don't rush - take time to analyze each offer thoroughly
  • Calculate net proceeds for each offer after all costs
  • Assess buyer qualification strength
  • Consider timeline compatibility with your needs

Step 2: Counter Strategy

  • Best and Final: Ask all buyers for highest and best offers
  • Escalation Clauses: Allow buyers to automatically outbid others
  • Selective Counters: Counter only the most promising offers
  • Non-Price Terms: Negotiate closing dates, contingencies, inclusions

Step 3: Final Selection

Highest Net Proceeds: After all costs and concessions
Strongest Buyer: Most likely to close successfully
Best Terms: Favorable contingencies and timeline
Backup Offers: Keep second-best offer as backup

Negotiation Tactics

Your agent's negotiation skills can significantly impact your final outcome.

Price Negotiations

Anchoring

Start with your asking price as the reference point for all negotiations

Incremental Concessions

Make smaller concessions each round to signal you're reaching your limit

Package Deals

Bundle price with other terms - "We can accept $X if you waive inspection"

Market Justification

Use comparable sales data to justify your price position

Terms Negotiations

Contingency Limits

Shorten timelines and limit scope of inspection repairs

Closing Date Flexibility

Offer rent-back or early possession to accommodate buyer needs

Inclusion Negotiations

Use appliances and fixtures as negotiating chips

Earnest Money Increases

Request higher earnest money for price concessions

Common Negotiation Scenarios

Prepare for these typical situations with proven response strategies.

Low-Ball Offer

Situation: Offer 10-20% below asking price

Option 1: Counter at full asking price with message about market value
Option 2: Counter at 5-10% below asking to show willingness to negotiate
Option 3: Reject and wait for better offers if market is strong

Inspection Repair Requests

Situation: Buyer requests $5,000+ in repairs

Option 1: Offer cash credit at closing instead of making repairs
Option 2: Address only safety/structural issues, decline cosmetic items
Option 3: Get second opinion on repair costs and negotiate based on actual quotes

Appraisal Shortfall

Situation: Home appraises $5,000 below contract price

Option 1: Split the difference - reduce price by $2,500
Option 2: Hold firm on price, buyer pays difference in cash
Option 3: Challenge appraisal with additional comparable sales data

Ready for the Next Step?

With an accepted offer in hand, you'll need to manage the inspection and appraisal process to ensure a smooth path to closing.