Approaching an Offer: Questions and a Checklist

Overview

Making an offer on a property typically involves balancing many practical and personal factors. The goal of this guide is to present a neutral framework you can adapt to your situation. Use these prompts and checks to prepare, not as definitive advice.

Decision framework

• Clarify objectives: Are you prioritizing price, timing, certainty, or specific terms? Different priorities change how you structure an offer.
• Evaluate risk tolerance: How much uncertainty are you willing to accept in inspections, financing, or timelines? That tolerance should inform contingencies and deadlines.
• Compare options: If you have multiple properties under consideration, create a simple pros-and-cons list that includes intangible factors like location convenience and maintenance expectations.

Key questions to ask before you draft an offer

• What is your maximum acceptable price and what do you consider a reasonable opening? Set both an initial position and a walk-away point.
• What type of contingencies will you include? Typical categories to consider are financing, inspection, and title review.
• How long will you allow for inspections and financing approvals? Think about realistic scheduling given your circumstances.
• What disclosures have you received and what additional information do you need? Ask for any documentation you consider essential.
• Who will handle the coordination of paperwork and communications, and how will communications be documented?

Risk-aware checklist

• Confirm pre-approval or proof of funds: Ensure your financing or funds documentation is organized.
• Identify absolute deal breakers: Note any items that would cause you to stop the process.
• Plan for contingencies: Decide what conditions you need and reasonable timeframes for each.
• Schedule professional reviews: Arrange for any inspections or appraisals you consider necessary.
• Keep records: Save copies of all offers, counteroffers, and written agreements.

Negotiation posture and follow-up

Be prepared to adjust terms based on responses, but keep your priorities visible to guide concessions. After you submit an offer, continue tracking deadlines and confirmations in writing.

This framework is intended to help you think through options and risks. For specific legal, tax, or financial guidance, consult an appropriate licensed professional.