6. Receive an Offer

When you receive a written offer from a potential buyer, the first step is to find out if the individual is prequalified or preapproved to buy your home. If so, then you and your agent will review the proposed contract, taking care to understand what is required of both parties to execute the transaction. The contract, though not limited to this list, should include the following:

• Legal description of the property
• Offer price
• Down payment
• Financing arrangements
• List of fees and who will pay them
• Deposit amount
• Inspection rights and possible repair allowances
• Method of conveying the title and who will handle the closing
• Appliances and furnishings that will stay with the home
• Settlement date Contingencies

At this point, you have three options: accept the contract as is, accept it with changes (a counteroffer), or reject it. Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with your real estate agent right away.