First of all, please be on the alert for any communication from us during the rest of this process. Massachusetts is a “time is of the essence” state which means all parts of a real estate transaction should be handled with the utmost attention to timeliness and speed. We may need your response quickly to keep the deal in place and moving forward without problems, so please watch for our communication with you!
As you receive one or more offers, we’ll evaluate them and decide how to respond - and, as just was stated, we need to respond in a timely manner.
What is an offer?
An Offer To Purchase is an agreement signed by the potential buyer including these details:
- The amount of the offer.
- An explanation of how the buyer will pay, such as cash or a pre-approval for financing.
- The terms or conditions of the agreement (usual contingencies may include the sale of the buyer’s house, final mortgage approval, and/or a satisfactory home inspection).
- Target dates for signing the Purchase & Sale Agreement and actual closing/taking possession.
- Amounts for Offer and Purchase & Sale earnest money deposits.
- A time limit for the offer.
How do I evaluate each offer?
When you receive an Offer To Purchase, we’ll review it and consider whether you want to accept it. Whether you have one offer or several, we’ll look at:
- The price offered to purchase the house.
- Whether the buyer has included or waived “contingencies” as stated in addendums.
- Target date for closing/date of possession of the house to see if it aligns with your needs.
- Where the funds are coming from, such as all-cash, a reputable local lender, a well-known online lender, or an unknown out-of-town lender.
- Amounts of earnest money deposits - typically the initial “Offer” deposit is between $1,000-$5,000 with the second “Purchase & Sale Agreement” deposit being between 3-10% of the purchase price.
- Time limit for acceptance of the offer.
- Time limit for execution of the Purchase & Sale Agreement (see Step #7).
- Any special requests for items to convey or for special inspections.
What happens if I receive multiple offers?
If you receive multiple offers, we’ll explore the following options:
- Accept the best offer. If one offer stands above the rest, you can accept that one right away. But be careful not to be swayed by a high offer if the financing seems uncertain or if the buyer hasn’t explained a plan for a possible low appraisal.
- Counter all the offers to get a better price and terms. You can ask all potential buyers to give you their best offer by a certain deadline.
- Counter one offer that’s close to what you want. If you like one offer but think the buyer could do a little better, we can send them a counteroffer to see if they’ll accept.
The offer is final once you and the buyer have agreed to all terms and both sign the offer paperwork.
As your designated agent, we’ll work on YOUR behalf to negotiate the terms in your very best interests, leveraging all of our data and expertise!