Listing Agent Offer Review Checklist

Let’s walk you through how to review and present a real estate purchase contract as a listing agent. The first step is acknowledging the agent that sent the offer to let him know it’s been received. Next, you’ll want to make sure the offer includes these signed documents:

Signed document list:

• Signed purchase contract
• Signed Agency Disclosure
• Signed Lead-Based Paint Disclosure
• Pre-Approval Letter or proof of funds (If contract states that it’s being financed, if the offer is cash then they will need provide proof of funds.)

Key speaking points to touch on when presenting to clients:

Offer amount: Go over the offer amount and as you explain the other variables below you will be able to calculate what the seller is going to take home.

Offer Expiration: You will have a specific amount of time to respond to this offer, let your seller know this straight away and communicate with the buyer’s agent if anything comes up and you can’t make the cutoff time.

Earnest Money: Earnest money is “good faith” money, and it is deposited by the buyer’s agent. If the buyer breaks the contract without using any using any contingencies written within the offer, then the seller will most likely keep the earnest money. Having more a higher amount of earnest money shows the seller how much they are willing to risk to get the transaction closed. If it’s a higher amount they are likely more confident that the deal will go through.

Financing: Look to see how the offer is going to be financed. Cash is always a strong bet because they don’t have to go through as many steps or approvals, compared to when you are financing a deal with a loan. Look for FHA, VA, or any other financing that comes with additional steps in the transaction.

Inspection Contingency: A typical inspection period is between 5-7 days and typically comes as contingency on the offer. If they put in that they would like 10+ days, then you should consider that this transaction might take longer than normal to close. If an offer comes in with waiving the inspection, then that is good news for your seller because then the buyers most likely won’t ask for any additional concessions and the seller wouldn’t have to agree to them if they did.

Closing Costs: If the buyer adds any closing costs paid for by the seller than you should take that amount off the offer price when explaining the contract.

Title Costs: Same with any title costs.

Home Warranty: Same with any Home Warranty costs.  

Closing date: Depending on your seller’s situation a quick close could mean a lot to them, see when the offer is expected to close and take note of when the buyer would take occupancy of the property.

Real Estate Agent: Present the name of the real estate agent that is representing the buyers.

With anything else in real estate, everything is negotiable. Remember when you are communicating with possible buyers and agents that you are protecting the seller’s best interests. Communication is key with all parties involved when presenting and clarifying offers. The last thing you want is surprises down the line once you have an executed contract. Triple check the contract before presenting and make sure the other agent filled out all the documents entirely. Good luck and check back to the Career Corner for more agent tips.