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 Making an Offer

Making an Offer & Negotiating the Contract

Congratulations—we’ve found a home that checks most of the boxes and you’re ready to take the next step.

Now comes the part where strategy matters.

Making an offer is more than simply deciding on a price. Terms, contingencies, timelines, financing, and negotiations all play an important role in whether your offer is accepted and how smoothly the transaction proceeds.

The good news is that we’ll guide you through every step of the process and help you make informed decisions along the way.

Frequently Asked Questions

This is probably the most common question buyers ask.

The answer depends on several factors, including:

  • Current market conditions
  • How long the property has been on the market
  • Recent comparable sales
  • Property condition
  • Seller motivation
  • Competing buyer interest

A newly listed property receiving significant activity may require a very different strategy than a home that has been sitting on the market for several months.

Our job is to provide current market data and guidance so you can make an educated decision.  We run the numbers, speak with the listing agent and give you all the information we have available so that you’re comfortable with the offer.  Mike has over 30 years of negotiation experience and we’ve been able to get some amazing deals for our buyers and sellers due to that experience.

Ultimately, the offer amount is always your decision but we want you to have all the data so your decision is sound.

Earnest money, sometimes called a good faith deposit, demonstrates that you’re serious about purchasing the property.  That is usually put in escrow 3 days AFTER an accepted contract.  The deposit is credited toward your purchase at closing.

A stronger earnest money deposit can sometimes make your offer more attractive to a seller because it demonstrates commitment.  We’ll review all of this when we are writing up the offer.

If the transaction moves forward successfully, the escrowed funds are applied toward your purchase.

Many buyers focus exclusively on purchase price.

Experienced negotiators know that other terms can be equally important.

Factors that may influence a seller’s decision include:

  • Financing terms
  • Closing date
  • Inspection period
  • Earnest money amount
  • Flexibility regarding possession
  • Contingencies

Sometimes a slightly lower offer with better/cleaner terms can beat a higher offer with multiple requests.  Offers should be viewed as a complete package rather than a single number.

Every offer includes an expiration date and we help you decide how much time we are willing to wait for a response.  Sometimes their agent can give us some insight into this as well as response times vary depending on the situation.

The seller has four options once they receive an offer.  A seller may:

  • Accept the offer
  • Reject the offer
  • Counter the offer
  • Allow the offer to expire

In some situations, particularly with new listings or multiple-offer scenarios, sellers may respond quickly or may ask for best and final offers.

In other cases, especially with out-of-state owners or complex transactions, responses may take longer.  We’ll advise you on the best response deadline based on the specific circumstances.

A rejected offer doesn’t necessarily mean the transaction is over.

That does happen.  A rejected offer doesn’t mean that you won’t be able to buy the home; we will need to negotiate through counteroffers and revised terms.

If a seller rejects your offer, options may include:

  • Submitting a revised offer
  • Adjusting contract terms
  • Improving financing terms
  • Increasing the purchase price
  • Walking away and continuing your search

Real estate negotiations are often a process rather than a single event; don’t take anything personally, it’s a transaction and you’ve got a goal in sight.

A counteroffer occurs when one party proposes modifications to the original offer.

Common changes may involve:

  • Purchase price
  • Closing date
  • Inspection periods
  • Seller concessions
  • Personal property included in the sale (best dealt with after the purchase price has been agreed upon).

Negotiations continue until both parties reach an agreement or one party decides not to move forward.  We like to get the most for you for the least amount of money.  That’s a win. 

Multiple offers can happen for desirable properties, especially homes that are priced correctly (or below market value) and located in highly sought-after Naples communities.

If multiple offers exist, sellers options include:

  • Accept one offer immediately
  • Request highest and best offers
  • Counter one or more buyers
  • Modify both price and contract terms

In a multiple offer situation, buyers should present their strongest offer from the beginning.  Once a seller goes under contract with a different buyer it’s very usual for another opportunity to arise to purchase that property.  

Absolutely.  We strongly recommend that you have inspections done for your new home.  Inspectors help identify potential issues before closing and allow buyers to make informed decisions.

Common inspections may include:

General Home Inspection

Evaluates major systems and components of the home.

Pest Inspection

Identifies termites and other wood-destroying organisms.

Mold Inspection

Determines whether mold is present and if further evaluation is necessary.

Roof Inspection

Provides a detailed assessment of roof condition and remaining useful life.

Pool Inspection

Reviews pool equipment, operation, and overall condition.

Seawall or Dock Inspection

Particularly important for waterfront properties.

Radon Inspection

Radon is a naturally occurring, odorless, colorless gas that can accumulate inside homes and may increase the risk of lung cancer with long-term exposure. A radon inspection measures the concentration of radon gas within the property. The U.S. Environmental Protection Agency (EPA) recommends taking action to reduce radon levels when results are 4.0 picocuries per liter (pCi/L) or higher. Even lower levels may warrant mitigation depending on the circumstances and buyer preferences. Testing is the only way to determine a home’s radon level.

Inspections are one of the most valuable protections available to buyers.

Almost every inspection uncovers something, even in new construction.  The purpose of an inspection is not to find a perfect home. It’s to better understand the condition of the property.

Depending on the findings, buyers may choose to:

  • Proceed as-is
  • Request repairs
  • Request a credit
  • Renegotiate terms
  • Cancel the contract if permitted by the inspection contingency

We’ll help you evaluate inspection findings and determine the best course of action.

If you’re obtaining financing, your lender will typically require an appraisal.

The appraiser’s role is to determine whether the property’s value supports the loan amount.  The appraisal protects the lender by ensuring the home is worth what is being financed.

Most appraisals proceed without issue, but if a property appraised below the agreed purchase price then buyers and sellers may need to renegotiate terms.  Our goal is to not have this happen by buying the home for the right price to begin with.

Contingencies are contractual provisions that must be satisfied before the transaction can proceed.

Common contingencies include:

  • Financing contingency
  • Inspection contingency
  • Appraisal contingency
  • Sale of another property contingency

Contingencies provide important protections for buyers and are important deadlines to keep track of during the transaction.  FYI, in highly competitive situations, sellers may prefer offers with fewer contingencies.

We’ll help you balance risk and protection based on your circumstances.

Most residential deals in Naples close within approximately 30 to 45 days after contract acceptance.  Most financed deals will need 30-35 days to get a “clear to close” from the lender.

However, timelines vary depending on:

  • Financing requirements
  • Inspection issues
  • Title work
  • Appraisal timing
  • Condo association approvals
  • Buyer and seller schedules

Cash transactions are able to close much faster as there are far fewer contingencies.

All of these dates will appear in the purchase agreement.

If you’re working with us and find a For Sale By Owner (FSBO) property, let us know before contacting the seller directly.

In many cases, we can reach out on your behalf and assist with negotiations, contract preparation, inspections, and closing coordination.

Having professional representation can be especially valuable in FSBO transactions because there may not be another real estate professional involved to help manage the process.

This is extremely important.

Once you’re under contract and especially if you’re obtaining financing, avoid making major financial changes.

Top 5 Do Not Do Prior to Closing:

  • Open new credit accounts
  • Purchase a vehicle
  • Make large purchases
  • Change jobs without consulting your lender
  • Transfer significant amounts of money between accounts without documentation

Your lender may verify your financial situation multiple times before closing and they can deny you if they can’t verify a large transaction or if your credit score changes.  Maintaining financial stability helps avoid last-minute surprises.

Florida does not require buyers to hire a real estate attorney for a standard residential transaction; most closings are handled by title companies or closing attorneys.

That being said, there are situations where legal advice may be beneficial, particularly when dealing with:

  • Estate sales
  • Trusts
  • Foreign ownership
  • Complex contract issues
  • Commercial properties

We think it’s best to use an attorney for closing so if there are issues, you don’t have to hire an attorney, you already have one working for you who is vested in your closing.  If that’s what you would like, we can refer you to experienced real estate attorneys who specialize in Florida transactions.

A successful offer is about more than just price, it’s a combination of factors.

The best way to get your offer accepted is to combine:

  • Competitive pricing
  • Favorable terms
  • Realistic timelines
  • Proper contingencies
  • Strong financing

Every property and every seller is different.

Our role as experienced Naples REALTORS® is to help you structure the strongest possible offer while protecting your interests throughout the negotiation process.

Once your offer is accepted, you’ll move into the next phase of the journey: inspections, financing, and preparing for closing day.