Seller Resources & Tools
Understanding a Contract (The Offer)
Price is one number on page one. The other twelve pages are where the money is.
Most first-time self-represented sellers scroll to the purchase price and start negotiating that number — while the offer contains a 21-day inspection window, a $5,000 deposit on a $600,000 house, an appraisal contingency with no gap coverage, $18,000 in requested seller credits, a 60-day closing, and a clause obligating you to pay the buyer's broker. That's not a $610,000 offer. Netted out, it's roughly $592,000 with a hair trigger and two months of exposure attached.
Licensed broker, 24 years, four states. This is how I read an offer, in the order that matters. Your form will differ by state — Florida's FR/BAR "AS IS" versus the forms used in Connecticut, Massachusetts, or Illinois — but every residential contract has these same parts.
1
Parties and Property
Confirm the buyer's name is who will be on the deed and, if financed, on the loan. An LLC with an assignment clause may be a wholesaler intending to flip the contract, not close on it. Confirm the legal description and parcel ID match exactly, and that nothing was added — a lot, an easement, land you don't own.
2
Price — Evaluate It Last
Write it down and set it aside. The real question is never "what's the price?" It's "what's my net, and will this actually close?"
| Offer A | Offer B | |
|---|---|---|
| Price | $615,000 | $598,000 |
| Deposit | $5,000 | $40,000 |
| Financing | 3% down, FHA | Cash, proof attached |
| Inspection | 21 days | 7 days |
| Appraisal | Contingent | Waived (no lender) |
| Concessions | $18,000 | $0 |
| Buyer broker comp | 3% from seller | Buyer pays own agent |
| Closing | 60 days | 21 days |
| Approx. net | ~$578,550 | ~$598,000 |
Offer A looks like more money, is ~$19,000 less, arrives two months later, and can evaporate on inspection or appraisal. Run the net on paper, every round.
3
Escrow Deposit
The fastest read on how serious a buyer is. Under 1% on a financed deal is thin. 1–3% is normal. 5%+ means they won't walk lightly.
Red Flags
Deposit due in 10 days (should be 3 business days), funds held by the buyer's own attorney rather than a licensed title company or escrow agent, split deposits with a second installment far out.
Counter: increase the deposit, shorten the delivery window. Resistance to both tells you something.
4
Financing
Identify the loan type, down payment, and financing deadline.
Cash with verifiable proof of funds is strongest — liquid, in the buyer's name. A brokerage statement is fine; a crypto wallet screenshot is not.
Conventional, 20%+ down — strong, with cushion if the appraisal disappoints.
Conventional, 3–5% down — workable, less room to cover an appraisal gap.
FHA/VA — legitimate and common, but stricter property standards. Peeling paint, bad roof, missing handrails, or dead systems can stop the loan.
The financing contingency lets the buyer cancel with their deposit back if the loan fails. 21–30 days is common; shorter favors you. Read the preapproval — real lender or a broker's prequalification? "Subject to sale of buyer's current residence" is a contingent offer wearing a costume.
5
Inspection — The Re-Trade Window
In most modern contracts this is effectively an option period: the buyer can cancel for essentially any reason and recover the deposit. Length is everything — 7–10 days is a serious, organized buyer; 15 days is standard in many markets; 21+ days is three weeks off-market while a buyer decides how they feel.
"As-is" does not mean "no inspection." It means no advance agreement to repair. They still inspect, still can walk, and will very likely ask for a credit.
- 1
Demand the actual report, not a list of demands.
- 2
Separate defects from wish list. An active roof leak is a defect; twenty-year-old tile is not.
- 3
Counter with a credit rather than performing repairs — cleaner, faster, and you don't warranty someone else's contractor.
- 4
Know your walk-away number before you open the email.
Disclosure
Most states, Florida included, require disclosing known material defects not readily observable that affect value. Disclosed is a negotiation. Concealed is a lawsuit.
6
Appraisal Contingency
If financed, the lender appraises. Come in low and the lender lends against the lower number; the buyer can typically renegotiate or cancel.
Defenses: request a partial or full appraisal gap waiver (buyer covers a stated shortfall in cash); take the cash offer with no appraisal contingency; support the value by giving the appraiser your comps, dated improvements, and access. Appraisers routinely accept seller-supplied data.
7
Concessions and Closing Costs
Read this section with a calculator. Seller-paid closing costs, rate buydowns, home warranty, title insurance allocation, transfer taxes, HOA transfer and estoppel fees, survey, municipal lien search — each line is negotiable and each comes off your net.
A concession is a price reduction wearing a hat. $612,000 with $12,000 in seller-paid costs is $600,000. Convert every concession into a price and evaluate it there.
8
Buyer Broker Compensation — Read Twice
The clause that most often costs a self-represented seller five figures. It now lives inside the offer rather than on the MLS, appearing as a compensation addendum, a line under concessions, a "seller to pay buyer's broker X%" insertion, or language referencing the buyer's own representation agreement.
No law obligates you to pay the buyer's agent. No fixed percentage exists. "Standard" describes a habit.
The buyer's agent has a signed agreement with their buyer covering their fee. When the offer asks you to cover it, the buyer is asking you to pay their bill.
Fully negotiable. Decline it. Counter it lower. Or trade it — for a higher price, a bigger deposit, a shorter inspection, a faster close.
Never accept it as a percentage. A flat dollar figure caps your exposure and doesn't scale with the price.
Counter Language
"Seller will not contribute to buyer's broker compensation. Purchase price adjusted accordingly."
Or, if you're trading: "Seller will credit $X,XXX toward buyer's costs, allocable at buyer's discretion, contingent on a 7-day inspection period and closing on or before [date]."
If you're giving something, get something. Background on the underlying math is in Commissions: What You Actually Owe.
9
Closing Date, Possession, Personal Property
Closing: every extra week is carry cost and risk. 21–30 days cash, 30–45 financed.
Possession: at closing, funded. Never hand over keys before funds are in your account. Treat rent-back requests carefully — written agreement, daily rate, security deposit.
Personal property: check what the buyer wrote in. Appliances, window treatments, mounted TVs, patio furniture, the chandelier from your grandmother. Strike anything you're not leaving. This causes more walkthrough fights than anything else on the page.
10
Title, Survey, and the Rest
Confirm who selects and pays for the title company or closing attorney (varies by state and county), who pays owner's title insurance, the title objection timeline, the survey and who pays for it, and any HOA or condo approval process — some associations add three weeks and require a buyer application and interview. Foreign seller? Flag FIRPTA withholding with your closing agent early, not at the table.
How to Counter
Accept, counter, or reject. Counter as a package, not a list of complaints — and counter on terms, not just price:
"Thank you — we're close. Countering at $605,000 with: deposit increased to $25,000 delivered within 3 business days, inspection period 10 days, no seller contribution to buyer's broker compensation, closing on or before [date]. Everything else as written. Open until [date/time]."
Short. Specific. Not apologetic. The expiration keeps momentum.
Three things while you negotiate: silence is leverage — you don't owe a reply in an hour. Net, not price. And the best deal isn't the highest number, it's the highest number that actually closes.
The Point
Protect the Rest of the Money
You listed flat fee, entry only, self-represented, and already saved the listing commission. This document is where you protect the rest — by refusing a buyer broker commission you don't owe, converting every concession into a price, and knowing which clauses cost money. Maximum exposure got the offer in the door. Reading it correctly turns it into a maximized payout. What happens after you sign is in From Contract to Closing, part of the full Seller Resources & Tools library.
Frequently Asked Questions
Can I reject an offer because it asks me to pay the buyer's agent?
Yes. Buyer broker compensation is a negotiable term, not an obligation. Decline it, counter it, or trade it.
What's the difference between an "as-is" contract and a repair contract?
"As-is" means no advance commitment to repairs. The buyer still inspects and can typically still cancel within the inspection period.
How long do I have to respond to an offer?
Until its stated expiration. Without one, an offer can generally be withdrawn any time before acceptance — don't sit on one you want.
Should an attorney review the contract?
If anything is unclear, yes. Self-representation saves the commission, not the value of review where it counts.
General educational information — not legal or tax advice. Contract forms vary by state. Consult a licensed attorney in your state.