Accept or Counter an Offer
Once you receive an offer to purchase from the buyer you have two options: accept or counter the offer. If you counter the offer due to price, terms, etc., a counter offer form is required.
When you accept an offer you may want to collect a deposit. This shows the buyer’s commitment and deters them from backing out of the offer. The deposit can be any amount you agree upon, but typically ranges between $500 and $3000. The money can be held by the seller or placed in escrow. You can open an escrow account through title companies, attorneys, banks or an escrow service (see Professional Resources).
In the Offer to Purchase, the buyer may include some contingencies. Contingencies are items such as home and other inspections, financing and appraisals. Be sure you are comfortable with and able to fulfill these contingencies.
To provide evidence that the property is free and clear of any liens and encumbrances, you will need to purchase title insurance, which is available through a local title insurance company. Obtaining title insurance may take a few weeks, so you may want to do this as soon as possible (see Professional Resources).
The closing of your property may be held at a title company, the buyers’ mortgage company or an attorney’s office (see Professional Resources).