Received an offer for your client? A careful review ahead of time can prevent problems later. Here is a list of items to look for to help protect your seller, demonstrate your expertise, and set the stage for a smooth transaction.

10 Things to Look for When Reviewing an Offer

Thoroughly reviewing an offer is key to a successful transaction. This list helps you identify some critical details early, protecting your seller’s interests, showcasing your professionalism, and ensuring a smooth path to closing. Many of these points can be clarified or corrected with a thoughtful counteroffer or addendum. As a best practice, encourage your seller to read the entire offer packet themselves. Ideally, they should review a blank Sale Agreement at the time of listing, so they’re better prepared to understand the terms, ask informed questions, and confidently decide whether to counter or accept the offer as presented.

1. Confirm the Correct Sale Agreement is Used
Different types of properties require specific sale agreements. Ensure the correct Oregon Real Estate Forms (OREF) agreement is used, such as OREF 008 for vacant land. Using the wrong form could omit crucial information specific to the transaction.

2. Verify All Addenda Are Referenced and Received
Confirm that the sale agreement clearly mentions every addendum included with the offer. Addenda make up part of the contract terms and overlooking them can lead to confusion or disputes later. If an addendum (e.g., HOA, septic, well) is referenced but missing, immediately request it from the buyer’s agent for review.

3. Ensure No Section of the Sale Agreement Is Left Blank
Verify that the appropriate checkboxes are selected in sections with multiple options. Sections with default provisions, such as the standard 10-day inspection period, should ideally always be filled out. However, if these defaults are not filled in, confirm with the buyer’s agent that their intent is indeed to rely on the default provisions.

4. Thoroughly Discuss Earnest Money Amount with Your Seller
The earnest money is the seller’s primary compensation if the buyer breaches the contract. Don’t overlook the importance of confirming with your seller that the earnest money offered is sufficient to satisfy them if the buyer defaults.

5. Clearly Confirm Included Personal Property, Especially Appliances
Any personal property items the buyer expects to remain with the property, such as appliances, must be explicitly mentioned in the contract. If the Personal Property section is blank, verify with the buyer’s agent to avoid disputes at closing.

6. Verify the Existence of a Pre-Approval Letter
A pre-approval letter provides proof that the buyer is financially qualified. Confirming its inclusion helps reassure the seller and informs them of the lender involved, potentially impacting their decision.

7. Clarify VA Loan Closing Costs
If a buyer is using a VA loan, make sure the sale agreement clearly specifies who covers certain closing costs (“VA non-allowables”). Confirm whether the seller is expected to pay these fees and if they’re included in any requested seller concessions toward closing costs. Seek clarification from the buyer’s agent and incorporate this information into any counteroffer if needed.

8. Review the Seller Representations Section
Review all items in the Seller Representations section carefully, ensuring that water and sewer details are complete and accurate. Any discrepancies or missing information should be clarified through a counteroffer or addendum.

9. Confirm Closing Date Feasibility with the Lender
Before finalizing the closing date, consult with the buyer’s lender to ensure they can meet the proposed timeline. This step prevents unrealistic expectations and unnecessary stress for your seller.

10. Carefully Review the Possession Section
Ensure the possession details are thoroughly completed, especially regarding tenant occupancy. Verify that the correct options have been selected and discuss any tenant-related expectations with your seller. Also, confirm any terms about the property’s condition upon possession.

Bottom Line:
The success of any transaction often hinges on the details. By identifying and addressing potential issues early—whether through a counteroffer or addendum—you set the stage for fewer surprises and a smoother path to closing. Ultimately, thorough preparation and clear communication lead to greater confidence for your seller and a stronger, more efficient transaction overall.

 

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.