How to Review and Compare Offers on Your Home in Texas

What’s in a Texas offer

Most offers on Texas resale homes use the contract form promulgated by the Texas Real Estate Commission, plus addenda. When an offer arrives, look at:

• Sales price and how it’s paid
• Financing addendum and loan type
• Earnest money amount
• Option period length and fee
• Who pays for the title policy
• Survey terms
• Seller contributions requested
• Buyer-broker compensation requested
• Closing date and possession
• Other addenda, such as a sale contingency

Comparing offers side by side

Hypothetical, for illustration only. Figures exclude other selling costs. Neither offer is automatically better. It depends on your goals, timeline, and tolerance for risk.

Ask your agent for an estimated net sheet for each offer, so you’re comparing what you’d actually walk away with. See estimating net proceeds.

Financing and appraisal risk

Financed offers usually include TREC’s Third Party Financing Addendum. It lets the buyer terminate within its terms if the loan isn’t approved or the lender determines the property doesn’t meet its requirements, including the appraisal. Ways to evaluate the risk:

• Review the preapproval: what was verified, and is the lender responsive?
• Check appraisal terms: TREC also has an optional addendum about the buyer’s right to terminate due to the lender’s appraisal, which can waive or limit that right.
• Consider the down payment: a larger down payment can give the buyer more room if the appraisal comes in low.
• For cash offers: ask for proof of funds.

The option period and option fee

Most Texas buyers negotiate an option period: an unrestricted right to terminate within a set number of days, in exchange for an option fee. Under the standard contract, if the buyer terminates on time, you keep the option fee and the buyer’s earnest money is refunded. If the sale closes, the fee is credited to the sales price. A shorter option period, or a larger fee, generally means more commitment from the buyer. Buyers usually inspect during this time, so expect possible repair requests.

Learn how buyers approach this in option periods, inspections, and appraisals.

Handling multiple offers

When several buyers are interested, you have options:

• Accept the best offer as written.
• Counter one offer while the others wait.
• Ask all buyers for their highest and best by a set deadline.
• Accept one and take a backup from another buyer.

Set clear deadlines, treat every buyer fairly, and keep decisions consistent with fair housing laws. Remember that buyers can withdraw an offer before it’s accepted.

Counteroffers and negotiation

A counteroffer replaces the buyer’s offer. The buyer can then accept, counter again, or walk away. Negotiation can cover price, contributions, closing date, option period, repairs, or a leaseback. If you need time after closing, TREC has a Seller’s Temporary Residential Lease for a short stay. Possession without a written lease can create legal and insurance problems.

Nothing is binding until the contract is signed by both parties and acceptance has been communicated. Your agent negotiates on your behalf, but you make the decisions.

Backup offers and sale contingencies

• Backup offers: TREC’s Addendum for “Back-Up” Contract lets you accept a second offer that moves into first position if the first contract terminates.
• Buyer’s sale contingency: TREC’s Addendum for Sale of Other Property by Buyer makes the purchase depend on the buyer selling their home. Unless otherwise agreed in writing, you may continue showing the property and accept backup offers. The addendum also sets out how the contingency can be removed. Review its terms with your agent.

After you accept an offer

Once the contract is signed, deadlines begin: earnest money and the option fee, inspections and repair negotiations, the appraisal, title work, and closing. Our seller’s guide from contract to closing walks through what’s next, including how signing, funding, and possession may happen at different times.