Here’s what happens next and what the purchase agreement means.
Receiving an offer is an important step. It means the right buyers found the home and were interested enough to move forward. The marketing reached the appropriate audience and the home was priced correctly for current market conditions. Now we will review the details together so you feel comfortable with the next steps.
Purchase Price
This is the amount the buyer is offering. You may choose to accept the offer as written or negotiate terms such as price, possession, or closing date.
Financing Type
This section explains how the buyer plans to pay for the home:
• Cash
The buyer does not need a loan. This can make the closing process quicker and more predictable.
• Conventional Mortgage
A standard loan type with a range of possible down payments. Typically fewer property repair requirements than government-backed loans.
• FHA Mortgage
Allows for lower down payments. May require certain safety or structural repairs before closing.
• VA Mortgage
Available to qualified veterans. Often no down payment. May also include property condition requirements before closing.
• USDA/Rural Development Mortgage
Used for homes in eligible rural areas. May offer little to no down payment. Property may need to meet certain guidelines.
Verifying the Buyer’s Qualification
Once we receive an offer, we call the buyer’s lender directly to confirm the level of pre-approval and make sure the buyer is financially able to complete the purchase. This helps reduce delays and prevents surprises later.
Earnest Money
The earnest money is the buyer’s good-faith deposit held by the title company. If the transaction closes, this amount is applied to the buyer’s costs at closing.
Inspection Period
The buyer is given a set number of days to complete inspections. After inspections, the buyer may choose to continue with the purchase, request repairs, request a price adjustment, or cancel the agreement depending on the terms. If the buyer cancels during the inspection period, their earnest money deposit is returned to them. We will review any inspection findings or requests together before deciding how to respond.
Appraisal
If the buyer is using a loan, the lender will order an appraisal to confirm the home’s value. The appraiser will also note the general condition of the property. If the appraised value comes in lower than the purchase price, we may need to discuss possible adjustments depending on the agreement terms. In some cases, depending on the type of loan (such as FHA, VA, or Rural Development), the lender may also require certain repairs to be completed before the loan can be approved. We will review any required items together and determine the best approach.
Closing Date
This is the target date to complete signing and transfer ownership. The agreement states this date as on or before, meaning closing can take place sooner if both sides are ready. Closing cannot take place later unless both parties agree in writing. The exact timing depends on the title company completing title work and, when applicable, the lender finishing underwriting and loan approval. We help coordinate these steps to keep the closing on schedule.
Possession
This outlines when you need to be moved out and when the buyer receives keys. Some sellers move out at closing, while others negotiate additional days depending on what works best.
Title Work and Tax Proration
The title company reviews ownership records and prepares the closing documents. Property taxes are usually prorated at closing so each party only pays for the portion of the year they owned the home.
Commission
The purchase agreement outlines the buyer’s agent commission, which is paid from your proceeds at closing.
Seller Net Sheet
We will prepare and send you a seller net sheet. This document will estimate your financial outcome at closing. It will show:
• Sale price
• Closing costs
• Commissions
• Your estimated proceeds at closing (the amount you take home)
This gives you a clear picture of what to expect financially before moving forward.
Next Step
We will review the offer together and discuss whether accepting, countering, or adjusting certain terms makes the most sense. You will have guidance at each step so you feel informed and confident moving forward.