Dec 16, 2026 · By Oanh Nguyen · Broker & Loan Officer · Selling
When an offer arrives, your eyes go straight to the price. That's natural. But the price is only one line on a contract that may run many pages.
The rest of the offer decides how likely the sale is to close, when it will close, how much risk you're carrying during escrow and how much money you'll actually take home.
In this post, I'll walk through how to review a single offer, or several, beyond the purchase price. We'll look at the deposit, the loan, appraisal and inspection terms, the closing date, your net proceeds and a comparison grid you can use.
This is general information, not legal advice. Your contract controls your transaction. For legal questions, talk with a real estate attorney.
Start With the Big Question
Before looking at details, ask: What matters most to me?
- The highest net amount?
- The most certainty that the sale closes?
- A specific closing date?
- Time to move, like a rent-back?
- The fewest repairs or credits?
Your answer helps you weigh the trade-offs. Most offers are strong in some areas and weaker in others.
The Deposit
The buyer's earnest money deposit shows commitment. It's held in escrow.
What to check:
- Amount. A larger deposit can show stronger commitment.
- Timing. When is it due to escrow?
- When it becomes more at risk. Usually after the buyer removes contingencies. Ask your agent how your contract's terms work.
A deposit doesn't guarantee the sale, but it's one signal of seriousness.
The Financing
For many sellers, financing strength is as important as price.
Cash offers:
- No loan contingency or lender process, which removes a common cause of delay.
- Ask for proof of funds, like a recent bank or brokerage statement.
- Check whether any of the cash depends on another sale.
Financed offers:
- Loan type: conventional, FHA, VA, jumbo or other. Each has its own process and property standards.
- Down payment size: a larger down payment may help if the appraisal comes in low.
- Pre-approval quality: Was the buyer's income, assets and credit reviewed, or just a quick estimate?
- Lender: a responsive, experienced lender can make a big difference.
- Call the lender. Your agent can ask how far along the approval is.
The Appraisal Terms
If the buyer is financing, the lender will order an appraisal.
What to check:
- Is there an appraisal contingency? If so, how long is it?
- What happens if the appraisal is low? Some offers include language about how the buyer would cover a gap. Read it carefully.
- How far is the price from recent comparable sales? The bigger the jump, the more the appraisal matters.
The Inspection Terms
What to check:
- Investigation (inspection) contingency: How many days?
- Did the buyer already inspect before writing the offer?
- Any requests already in the offer, like repairs or credits?
- Has the buyer reviewed your disclosures and reports?
Shorter inspection periods mean you know sooner whether the deal is solid. Pre-offer inspections can mean fewer surprises.
The Loan Contingency
If the buyer is financing, check the loan contingency period. During this time, the buyer may be able to cancel if their loan isn't approved, according to the contract.
A shorter loan contingency means less uncertainty for you, but only if it's realistic for the buyer's lender.
Sale Contingency
Does the buyer need to sell their own home first? A sale contingency adds uncertainty. If you accept one, understand the terms, including whether you can keep marketing your home.
The Closing Date and Timing
What to check:
- Closing date: Does it fit your plans?
- Rent-back: Does the buyer offer one if you need time to move? On what terms?
- Other timing items: possession date, contingency deadlines.
An offer that fits your timeline can be worth more to you than a slightly higher price that forces a double move.
Credits and Requests
Look for:
- Seller credits toward the buyer's closing costs.
- Repair requests already in the offer.
- Home warranty requests.
- Who pays which costs, like escrow, title, transfer taxes or reports.
Each of these reduces your net.
Other Terms
- Items included or excluded, like appliances or fixtures.
- Addenda or special terms.
- Response deadline: How long do you have to respond?
Your Net Proceeds
The best way to compare offers fairly is by estimated net proceeds: what you'd take home after costs and credits.
My post on estimating your net proceeds shows how. For each offer, I prepare an updated net sheet so you can see the real difference.
Risk Review
Ask for each offer:
- How likely is it to close?
- What could cause it to fall apart?
- How long am I exposed to that risk?
- What would I do if it fell apart?
A lower-risk offer may be worth more to you than a higher-price offer with more uncertainty.
Offer Comparison Grid
| Term | Offer 1 | Offer 2 | Offer 3 |
|---|---|---|---|
| Price | |||
| Deposit | |||
| Financing type | |||
| Down payment | |||
| Pre-approval / proof of funds | |||
| Appraisal contingency (days) | |||
| Appraisal gap language | |||
| Investigation contingency (days) | |||
| Loan contingency (days) | |||
| Sale contingency | |||
| Closing date | |||
| Rent-back | |||
| Credits requested | |||
| Other costs shifted to seller | |||
| Estimated net proceeds | |||
| Risk level (low / medium / high) |
Responding to an Offer
You can:
- Accept it as written.
- Counter with changes to price or terms.
- Reject it.
- Counter multiple buyers, using the right forms. My post on multiple offers explains how.
Always decide based on the offer's terms. Fair housing laws prohibit decisions based on a buyer's protected characteristics. That's one reason I recommend focusing on the terms, not personal letters.
How to Read an Offer: A Step-by-Step Order
When an offer arrives, I review it in the same order every time. It keeps emotions in check and makes sure nothing gets missed.
- Read the response deadline first. Know how much time you have.
- Check the price and the deposit.
- Review financing: cash or loan, loan type, down payment and the pre-approval or proof of funds.
- List every contingency and its number of days: investigation, appraisal, loan and any sale contingency.
- Check timing: closing date, possession and any rent-back.
- Note every credit, repair request or cost shifted to you.
- Read addenda and special terms carefully. Small wording changes can matter.
- Run an updated net sheet.
- Rate the overall risk of the offer closing as written.
- Decide how to respond: accept, counter or reject.
Red Flags to Look For
None of these automatically rules out an offer. They're signals to ask more questions.
- A pre-approval letter that's very old or doesn't match the offer price.
- Proof of funds that doesn't cover the cash needed, or funds held somewhere unclear.
- A deposit due much later than usual.
- Contingency periods that seem unrealistic for the buyer's lender or inspections.
- Vague language in addenda or special terms.
- A closing date that doesn't fit the loan type or your plans.
- A buyer who needs to sell first without a clear plan or timeline.
- Pressure to decide immediately without time to review.
If something seems off, your agent can call the buyer's agent or lender for clarity. For legal questions about contract language, talk with a real estate attorney.
Questions to Ask the Buyer's Agent
- How far along is the buyer's loan approval?
- Has the lender reviewed income, assets and credit, or only issued a quick estimate?
- Has the buyer seen and reviewed the disclosures and reports?
- Is the buyer flexible on the closing date or a rent-back?
- How would the buyer handle a low appraisal?
- Are there any terms the buyer cares about most?
Answers to these questions often tell you more than the offer itself. They also help you write a counter that the buyer is likely to accept.
Countering With Purpose
A counteroffer works best when you know what you want and why. Focus on the one or two terms that matter most to you, like price, contingency length or closing date. Changing too many terms at once can make the buyer walk away.
My post on what happens after you accept an offer explains what comes next once you've agreed on terms.
Key Takeaways
- Price is only one part of an offer.
- Financing strength, contingencies and timing affect whether the deal closes.
- Credits and cost shifts reduce your net.
- Compare offers by net proceeds and risk.
- Decide on terms, not on personal details.
A Hypothetical Example
This example is made up to show the process. It is not based on any real home or client.
A seller receives one offer. The price is a bit below list. At first, they feel disappointed.
We review the rest. The buyer has a strong pre-approval and a large down payment. They inspected before writing the offer and have no repair requests. The appraisal contingency is short. They offered the closing date the seller wanted and a two-week rent-back.
When we compare net proceeds and risk with what the seller might get by waiting, this offer looks strong. The seller counters slightly on price, the buyer agrees and escrow closes on schedule.
Frequently Asked Questions
What should I look for in an offer besides price?
The deposit, financing, appraisal and inspection terms, loan contingency, closing date, rent-back, credits and your net proceeds.
Is a cash offer always better?
Not always. It removes loan risk and may close faster, but a financed offer with strong terms and a higher net may be better for you.
How do I know if a buyer's financing is strong?
Check the pre-approval, down payment, loan type and lender. Your agent can call the lender.
What's an appraisal gap clause?
Language in an offer about how the buyer would handle an appraisal below the price. Read it carefully, and ask your agent how it works.
Should I accept an offer with a sale contingency?
It depends on the terms, the market and your goals. It adds uncertainty.
How long do I have to respond to an offer?
The offer usually states a deadline. Ask your agent.
Can I counter more than one offer at once?
Yes, with the right forms. Get advice before you do.
Should I read buyer letters?
I recommend deciding based on offer terms. Personal letters can raise fair housing concerns.
What if the offer has terms I don't understand?
Ask your agent to explain them. For legal questions about contract language, talk with a real estate attorney before you respond.
Can I ask the buyer for a larger deposit?
Yes. Deposit amount and timing can be part of your counteroffer.
Should I accept the first offer I receive?
It depends on the terms, the market and your goals. Compare it with what you might reasonably expect by waiting, and review the risk of each path.
How I Can Help
For every offer, I prepare a side-by-side comparison and an updated net sheet, call the buyer's lender and walk you through the risks of each term. Then we decide together how to respond.
The Bottom Line
Reviewing an offer means looking past the price to the deposit, financing, contingencies, timing, credits and your net proceeds. Compare offers side by side, think about risk and choose the one that best fits your goals.
Have an offer to review? Get help reviewing it. I'll build a comparison and net sheet so you can respond with confidence.
Sources
- U.S. Department of Housing and Urban Development, Fair Housing Act overview: https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview
- California Civil Rights Department, Housing discrimination: https://calcivilrights.ca.gov/housing/
Get help reviewing an offer. Call or text me at 408-780-1188, or email onrealtygroup@gmail.com.
Oanh Nguyen · Broker & Loan Officer · On Realty Group, brokered by LPT Realty · BRE #02133991 · NMLS 2020335
Equal Housing Opportunity.
Disclaimer: This post is general information only, not an appraisal or legal, tax or financial advice; data comes from the public sources linked above, is believed reliable but not guaranteed, and can change at any time.