Reading an offer correctly
An offer has six moving parts: price, financing type, contingencies, earnest money, closing date, and any seller concessions. Evaluate them as a system. A $310K offer with a $15K seller credit and a 45-day financing contingency is not better than a $300K cash offer with no contingencies and a 14-day close — even though the headline price is higher.
Counter-offer mechanics
Counters happen in writing. When a buyer counters, respond within 24 hours — momentum matters. Move price, contingencies, and closing date together; do not counter just the price three times in a row and leave the rest of the deal unaddressed.
Scripts that work:
- 'I can accept $312K with the inspection contingency capped at 7 days and the seller credit reduced to $5K.'
- 'On the appraisal contingency, I'd like an appraisal gap clause — buyer covers the first $10K of any shortfall.'
- 'I'd like to keep my list price; in exchange I'll cover up to $4K of closing costs.'
Contingencies — what each one means for you
- Inspection contingency — buyer can back out for any inspection finding. Cap the period at 7–10 days.
- Financing contingency — buyer can back out if their loan falls through. Demand a pre-approval letter and shorten the period to 21–30 days.
- Appraisal contingency — buyer can renegotiate if the home appraises below contract price. Ask for an appraisal gap clause.
- Sale-of-home contingency — buyer must sell their current home first. Avoid unless the buyer's home is already under contract.
Handling the inspection response
Most deals re-negotiate after the inspection. Buyers typically ask for repairs or credits totaling 1–3% of the purchase price. Reasonable response: agree to safety/health items (electrical, gas, structural, roof), credit smaller cosmetic items, push back on items that are clearly buyer wear-and-tear concerns.
Offer a credit rather than doing the repairs yourself when possible — cleaner timeline, fewer disputes.
When to call an attorney
Always for: deals above $500K, anything involving a 1031 exchange, anything with seller financing, anything with an unusual contingency. Often for: inspection re-negotiations with significant requests, appraisal gap negotiations, and anything that feels off.
A $300–$500 attorney consultation is the best ROI in the entire FSBO process.