Receiving a Buyers Offer
a Texas home sellers guide

An Offer to Buy

Your Hitz Team GMAC Realtor wants to make the offer and contract process a positive (yet stressful) event for you. We desire to educate you well before the offer so you are not only prepared but ready to respond in a positive negotiation that will result in a fair market value contract that will close.

When you receive an offer on your house, you will be ready because your GMAC Realtor has familiarized you with the terms and language in the standard Texas Real Estate Commission residential contract and you know what to expect. You will be an educated home seller who is ready to negotiate to an agreement if possible.

You will understand the current local real estate market as it relates to your home because that's what we do.

When the buyers agent presents your GMAC Realtor with the offer to buy, your Realtor will promptly provide you with the offer, cover it with you, assist you, advise you on the best course of action and answer any questions you have.

Your GMAC Premier Service Realtor represents you, and only you.

Frequently Asked Questions Answered:

Can Realtors Give Legal Advice?

No we are not allowed to. You will see this in bold print on various contracts. We will advise you to the best of our ability but cannot provide legal advice. The Texas Real Estate Commission TREC who licenses our GMAC Realtors forbids all Texas real estate agents from providing legal advice and for good reasons. The good part is the standard TREC residential contract between home buyers and sellers is straightforward and written in a pretty clear understandable manner. You may wish to consult with a Texas real estate attorney to assist you in reviewing the offer - it is the most important document of the home sale. If you plan on having an attorney review an offer prior to acceptance, arrange this in advance to minimize unnecessary stress on both yourself and the buyer.

What's an Offer, What's a Contract, and What's the Difference?

A written offer is only an offer until both the buyer and seller accept the offer by signing and initialing in the correct places. Once you and the buyer sign the offer, it becomes the residential contract between the buyer and seller.

In recap, the paperwork starts out as an offer. At this point, either the buyer or seller can void the offer for whatever reason and everything stops. The paperwork turns into a contract when one party makes a written signed offer and the second party accepts the offer and signs it prior to the first party pulling the offer off the table.

How is an offer created?

When a buyer decides to make an offer on your home, they sit down with their buyers real estate agent and fill in the blank sections of a Texas Real Estate Commission TREC residential contract (TREC 20-7) and any TREC or TAR addendum stating the offer terms. Once the paperwork is a complete offer, the buyer(s) sign and initial it. The buyers real estate agent provides the offer to your GMAC Realtor who receives the offer paperwork, reviewing it for completeness. Your Realtor then provides you with the written offer in person or by fax if you are out of area, depending upon how you agreed beforehand. Your Realtor will then go over the offer with you, providing Realtor advice and fielding the questions you will have.

When I receive an Offer, what are My Options?

Once you and your GMAC Realtor have thoroughly reviewed the buyer's offer, you have 2 choices:

  • Accept the offer terms with no changes, sign the offer and it becomes a Contract.
  • Reject the offer.

    • If you Reject The Buyer's Offer you have 3 choices:

  • Have your Realtor present your written offer to the buyers agent, which is often called a counter offer. This is typically the original offer paperwork with changes to the terms.
  • Have your Realtor present a Sellers Invitation To Buyer To Submit New Offer, which is not a counter offer, rather explaining that if the buyer changes terms (list specifics) in a new offer, you will consider it more favorably.
  • Choose not to present an offer to the buyer.

    • The offer process continues until the offer is accepted by both parties and becomes a contract or an offer is no longer presented.

    What about backup offers?

    Once you've signed an offer and it becomes a contract, you may accept a backup offer if that buyer clearly understands the house is under contract. The backup offer becomes effective only if the first offer falls through and the transaction fails. In the current DFW market, typically only unique homes in greater demand are going to have this potential situation.

    Isn't Offer Price the most important factor?

    Good question, not easily answered, but here goes.
  • Look at price minus additional buyers closing expenses or costly home repairs in the terms of the offer to determine the real price.
  • Consult with your Hitz Realtor Team DFW Realty GMAC Real Estate Agent to determine a price you are willing to accept. And No, this will not be disclosed to sellers real estate agents. Your Realtor can estimate your net proceeds - the sale price minus fees, taxes and insurance.
  • Don't be concerned if the offer you receive is exactly your asking price. It means you priced it accurately.
  • If the price is less than you wanted, look at the contract as a whole. What closing expenses did the buyer NOT ask for. Consider possession and financing terms (pre-approval?), as well.
  • Price or Net Proceeds are major offer factors but you also need to consider if there are any contingencies like you closing is contingent upon the buyer selling and closing their current home.
  • Consider splitting the difference if you and the buyer are within a few thousand dollars of each other. Remember that time on the market is an additional expense.

    • What is the Termination Option?

    This is spelled out in section 23 of the TREC residential contract and your GMAC Realtor will make sure you cover this early on. My general understanding is that TREC wanted to minimize legal disputes so in the option section the seller agrees to give the buyer a specific number of days to check out the home and terminate the contract during the option time for any reason. Many buyers get a home inspection done early in the option period and may ask the seller to agree in writing to repairs before the option period ends.

    How is Earnest Money handled?

    Your contract clearly states this information in section 18 and your GMAC Realtor will go over it with you. In general, an earnest money check will be held in escrow (often by the title company) per your contract, until closing. If everything goes as planned, at closing the money is credited by the title company to the buyer. If things don't go smoothly, the standard Texas residential contract spells out what happens to the earnest money.

    Property Title

    As part of the real estate contract process, you must prove to the buyer that you have a clear title on the house - that you own the property, and there are no legal claims against it. Through a title search, proof is provided.

    The Title Company agreed upon in your contract handles the title process with you. It is important to notify your Realtor of any title issues you are aware of. The insurance company may search the title through the owner's policy of title insurance. Either the buyer's insurance company or your own may conduct this. The abstract of title is a condensed history of a title to a property and a certification by the abstractor that the history is complete and accurate. The certificate of title is reviewed by an attorney who searches the title and issues an opinion that the title is clear.

    Property Deed

    Be prepared to transfer ownership of the property with a deed. This process is also handled by the Title company. A deed is a legal document that transfers the title (or ownership rights) of the property to the new owner. Most buyers will require a general warranty deed, in which you guarantee that no one will bring a claim against the title.

    Conditions and Contingencies

    Review the contract for any and all special conditions requested by the buyer. A common condition is one in which the purchase of your home is contingent on the buyer selling his or her current home. The conditions may also be more specific with short time frames.

    Provisions

    Although real estate provisions may be dry reading, it is important to carefully read the home sales contract and go over details with your Hitz Team GMAC Realtor. Read the fine print in your home sales contract to understand the provisions (or ground rules) of who pays for what in the context of the sale. For instance, the contract should explain who is responsible if there is damage to the house after the contract is signed. The responsible party will want to insure the property through the transition. You or the buyer may add special provisions to the standard ones.

    Sale Specifics

    Does the refrigerator stay or go? How about the drapes in the formal living room? Double-check that everything you intend to sell with the house is listed accurately in the contract. This include items such as fixtures, window treatments and appliances.

    We hope you found this article helpful. Chances are, you have more questions. Give us a call, that's why we're here. 214-514-1800.

    Contact Mark Hitz, Realtor, DFW Realty Today for your Real Estate Needs. If you are thinking of selling a home, or want to talk with an expert Real Estate Agent with detailed knowledge of local Real Estate, please feel free to contact us. Simply call Mark Hitz at 214-514-1800, or e-mail us. We'll be glad to talk with you, and help you in all of your Real Estate needs.