What’s Really in a Real Estate Offer? (It’s Not Just the Price!)
If you’re buying or selling a home, many people think an offer is just about the price — but there’s actually a lot more to it. Let’s break it down…
What’s Included in an Offer?
Here are the basics:
1. Price
This is how much the buyer is offering to pay. But the highest price isn’t always considered the best offer.
2. Financing
Is the buyer paying with a loan or cash? Cash offers can typically close quicker, show financial stability, and will not include a contingency in the offer for loan approval. If they’re using a loan, the size of their down payment is a consideration too.
3. Contingencies
These are conditions that have to be met. There are ways to manipulate these to make the offer more appealing to the seller or alternatively, better protect the buyer’s interests if they are in a position to negotiate.
- Inspection: The buyer can ask for repairs or back out if issues are found.
- Appraisal: If the home isn’t worth the offer price, the buyer may be able renegotiate.
- Loan: If their loan isn’t fully approved, they can walk away.
4. Earnest Money
This is a deposit the buyer gives to show they’re serious. More money = more commitment. In Colorado, the Title Company typically collects this deposit and holds it until it is put toward your down payment at closing.
5. Closing Date
This is when the buyer gets the keys to their new home. Some sellers want to move fast, others need time — matching their timeline can make a big difference.
Why It Matters
Two offers with the same price can be very different once you look at the details. That’s why it’s so important to understand the full offer — not just the number. And of course, it’s also important to understand the Seller’s motivations and what you might include to sweeten the deal.
If you're ever unsure, I’m here to help explain everything clearly and help you make smart decisions.
