What Goes Into an Offer on a Salt Lake County Home Besides the Price?

An offer is a set of terms, and price is only one of them. It also covers your deposit, the closing date, how long you have to inspect the home, whether the offer depends on your loan or on selling another home, what stays with the property, and any credits or requests you are making of the seller.

Charisse Walker is a real estate agent with Chalker Properties Group in Salt Lake and Davis County, Utah, and a licensed mortgage lender. Below is how I explain each part to buyers so they know what they are signing.

A strong offer is one the seller can trust and your own situation can support. It is not always the highest number.

Start with recent comparable sales: homes nearby, similar in size, age and condition, that sold recently. Your agent can pull these and explain what separates your target home from each one.

Then look at how the home was priced. A home priced in line with sales may deserve an offer close to list. A home that has sat for weeks may leave room to negotiate. A home with several showings in the first days may draw more than one offer.

Ask your agent for the full picture before you set a number. If the appraisal comes in lower than the price, you will need a plan, which is why it helps to think about that ahead of time.

The earnest money deposit is money you put down to show you are serious. It is usually held by a title company or a broker and goes toward your purchase at closing. The amount and the rules about when you can get it back are written in the contract, so read them closely with your agent.

The closing date is when ownership transfers. A seller who needs time to move may prefer a later date. A seller who needs cash may prefer an earlier one. If your date is flexible, that flexibility has value to the seller, and it costs you nothing to offer it.

Also ask about possession. Is it on the day of closing, or does the seller stay a few days after? If they stay, the terms should be in writing.

A contingency is a condition that lets you adjust or cancel if something is not right. Common ones cover the inspection, the appraisal, your financing, and sometimes the sale of your current home.

• Inspection: time to have the home inspected and to ask for repairs or credits.
• Appraisal: protects you if the lender's valuation is below the price.
• Financing: gives you time to complete your loan.
• Home sale: ties your purchase to selling your current house. Sellers often weigh these offers lower.

Each one gives you protection and gives the seller more uncertainty. Your agent can help you balance the two. Do not waive protections to look stronger unless you understand exactly what you are giving up and have talked it through with your agent and lender.

The contract sets dates for each step: inspection, response to repair requests, appraisal, loan approval and closing. These dates are not suggestions. Missing one can change your rights.

Book your inspector as soon as the offer is accepted. Ask your lender when the appraisal is ordered. Keep a calendar with every deadline and check it with your agent each week. Our guide to the home inspection explains what to expect.

You can ask for items to stay with the home: appliances, window coverings, a mounted TV bracket, a garage fridge. List them clearly, because anything vague causes arguments at the walk-through.

You can also ask for a seller credit toward closing costs. Whether that is allowed, and how much, depends on your loan type and the lender's rules, so check with your lender before you write it in. Credits are part of the total deal, so a higher price with a credit can net out differently from a lower price with none.

I do not state what is customary for who pays what. In Utah, it is a matter of negotiation, and your agent will tell you what is realistic in your situation.

Ask your agent how the listing agent wants offers submitted and when the deadline is. Then think about which terms matter most to you. Price is one lever. A shorter inspection period, a flexible closing date or a larger deposit are others, and each has a cost to you.

Set your limit before you write. Decide the highest price you are comfortable paying and the protections you will not give up. Stick to them. Losing a home hurts, but overpaying or waiving protections you needed hurts longer.

This is an example, not a client story. A buyer wants a townhome in Murray. Her agent shows her three recent sales nearby, and they set a price a little under list because the home has been on the market for several weeks. She offers a standard deposit, a closing date that works for both sides, a full inspection period, and keeps her financing and appraisal protections. She asks for the refrigerator to stay. The seller counters on price and agrees on the rest, and they settle in the middle.

Do I have to offer the list price? No. You can offer above, at or below, depending on the home and the market.

Can I walk away after an offer is accepted? Only in the ways the contract allows.

How fast do I need to decide? Sometimes within a day. Do your homework before you tour.

Should I have my lender talk to my agent? Yes. It helps the dates match.

Is this different for first-time buyers? The steps are the same. See the first-time buyer page.

Before you tour, ask me to walk through a sample offer so you know the terms in advance. You can also read about buying a home and the Murray and Sandy area pages. When you are ready, contact me here.

This article is general information, not legal, tax or lending advice. Your contract controls your rights, so read it closely with your agent.