Negotiating Offers and Closing the Sale
Understanding purchase agreements, evaluating offers, navigating contingencies, and successfully reaching closing on your Vermont home
The Art of Negotiation
Receiving an offer is exciting, but it's just the beginning of the negotiation process. The terms you negotiate—price, contingencies, timeline, and repairs—can significantly impact your net proceeds and stress level. Understanding how to evaluate offers and negotiate effectively ensures you maximize your sale while minimizing risk of deals falling through.
Understanding Purchase Agreements
Key components of every offer you'll receive
Purchase Price
The amount the buyer is offering to pay for your home
Earnest Money Deposit
Good faith deposit showing buyer's serious intent
Financing Terms
How the buyer plans to pay for the property
Contingencies
Conditions that must be met for sale to proceed
Closing Date
When the sale will be finalized
Inclusions/Exclusions
What stays with the home and what seller keeps
Never Review Offers Alone
Purchase agreements are legally binding contracts with significant financial implications. Always review offers with your real estate agent who can explain terms, identify red flags, and advise on negotiation strategy. In Vermont, the standard VCAR (Vermont Association of Realtors) purchase agreement is typically used, but terms can vary significantly.
Evaluating Offers: Beyond the Price
How to assess offer strength and choose the best one
| Offer Factor | Importance | What to Consider |
|---|---|---|
| Offer Price | High | Obviously important, but not the only factor. Consider net proceeds after closing costs and concessions. |
| Buyer Financing | High | Cash offers are strongest. Pre-approved conventional loans are solid. FHA/VA have additional requirements. |
| Down Payment | Medium-High | 20%+ down payment indicates financially strong buyer less likely to have appraisal or financing issues. |
| Contingencies | High | Fewer contingencies mean less risk of deal falling through. Inspection and financing are standard; others add risk. |
| Closing Timeline | Medium | Must work with your schedule. Quick cash closes can be 7-14 days; financed typically 30-45 days. |
| Earnest Money | Medium | Higher deposits show commitment. Typical is 1-3%, but 5%+ indicates very serious buyer. |
| Buyer's Letter | Low | Personal letters can be touching but evaluate offer terms first. Don't let emotion override business decision. |
| Escalation Clause | Variable | Buyer agrees to outbid other offers up to a maximum. Can be good but verify buyer can actually afford max price. |
Calculate Net Proceeds
The highest offer price isn't always the best deal. Calculate your actual net proceeds for each offer:
Contingencies Explained
Understanding common contingencies and how to navigate them
Home Inspection Contingency
10-14 days typicallyBuyer has right to inspect and negotiate repairs or credits
Seller Tips:
- Standard and reasonable contingency to expect
- Be prepared to negotiate repair requests
- Consider pre-inspection to identify issues early
- Set reasonable deadline (10-14 days max)
Financing Contingency
30-45 days typicallyBuyer must secure mortgage approval or can cancel contract
Seller Tips:
- Verify buyer has strong pre-approval letter
- Ask for proof of funds for down payment
- Shorter financing contingencies are better
- Cash offers eliminate this risk entirely
Appraisal Contingency
After inspection, before closingHome must appraise at or above purchase price
Seller Tips:
- Price home correctly to avoid appraisal issues
- Provide comparable sales data to appraiser
- Be prepared to negotiate if appraisal comes low
- Consider appraisal gap coverage requests
Sale of Buyer's Home
Variable, often 30-60 daysBuyer must sell their current home first
Seller Tips:
- Risky contingency—buyer's sale could fall through
- Accept only if buyer's home is already under contract
- Require kick-out clause allowing you to accept backup offers
- In seller's market, avoid these offers if possible
Handling Multiple Offers
Leverage competition to get the best price and terms
Review All Offers Thoroughly
- Compare net proceeds after all costs and concessions
- Evaluate buyer strength and likelihood to close
- Consider your timeline and contingency tolerance
- Don't rush—take time to analyze each offer
Request Highest and Best
- Notify all buyers you have multiple offers
- Set deadline for improved offers (24-48 hours)
- Don't disclose other offer details
- Creates competition and drives up price
Counter the Best Offer(s)
- Counter your top 1-2 offers simultaneously
- Request better terms while keeping competition alive
- Set short deadline for response (12-24 hours)
- Be prepared for both, either, or neither to accept
Accept and Execute
- Choose the offer with best combination of price and terms
- Execute contract promptly once terms are agreed
- Keep backup offers warm in case primary falls through
- Notify all other buyers you've accepted an offer
Multiple Offer Situations
Multiple offers are a seller's dream scenario. They indicate you've priced correctly and marketed effectively. Use the competition to improve terms: push buyers to remove contingencies, increase earnest money, waive repair requests, or raise their price. However, maintain professionalism and fairness—don't play games or act in bad faith, as this can backfire and offend all buyers.
Negotiating Repairs and Credits
How to respond to inspection repair requests
Reasonable Repairs
Significant issues affecting safety, structure, or systems
Recommended Response: Generally agree to fix or provide credits
Examples:
- • Roof leaks or damage
- • Electrical or plumbing issues
- • HVAC system failures
- • Structural problems
- • Well or septic issues
Minor/Cosmetic Items
Small repairs or aesthetic preferences
Recommended Response: Push back or offer small credit
Examples:
- • Paint touch-ups
- • Minor carpet stains
- • Cabinet hardware
- • Small drywall repairs
- • Cosmetic improvements
Big-Ticket Items
Major systems near end of life but currently functioning
Recommended Response: Negotiate credit or price reduction
Examples:
- • Aging roof with 5-10 years left
- • Older HVAC system still working
- • Old but functional appliances
- • Windows that could be upgraded
Credits vs. Repairs
Often better to give credits at closing rather than making repairs yourself. Buyers can choose their own contractors and you avoid scheduling headaches. Credits also ensure work is done to buyer's satisfaction.
Don't Over-Negotiate
Fighting over every small repair request can sour the deal. Pick your battles. If buyer is reasonable and financially strong, compromise on minor items to keep deal together.
Handling Low Offers
How to respond when offers come in below asking price
Offer is 5-10% Below Asking
Counter at or near your asking priceShow you're willing to negotiate but price is firm. If market supports your price, don't drop significantly.
Offer is 10-15% Below Asking
Counter meaningfully above their offer but show flexibilityMeet somewhere in middle if other terms are strong. Evaluate if your asking price is realistic.
Offer is 15%+ Below Asking
Reject or counter at asking priceDon't reward lowball offers with big concessions. If this is common feedback, reassess your pricing.
All Offers Coming in Low
Reduce asking price rather than negotiating individuallyMarket is telling you price is too high. Make strategic price reduction to attract better offers.
Listen to the Market
If every offer is coming in low, the market is telling you your asking price is too high. Don't take it personally—adjust your price based on feedback. One buyer offering low might be a lowballer; all buyers offering low means you're overpriced. Work with your agent to make strategic price adjustments rather than counter-offering each low bid individually.
Counteroffer Best Practices
Professional negotiation tactics that close deals
Move Quickly
Respond to offers within 12-24 hours to maintain buyer interest and momentum
Be Reasonable
Aggressive counters can offend buyers. Show willingness to negotiate fairly
Get it in Writing
All negotiated terms must be in writing. Verbal agreements aren't enforceable
Vermont Disclosure Requirements
Legal requirements you must fulfill when selling
Property Condition Disclosure
Required for most salesSellers must complete VCAR Property Condition Disclosure form disclosing known defects and issues
Well Water Testing
Required by lawWell water must be tested for coliform bacteria, nitrates, and other contaminants. Results provided to buyer.
Lead Paint Disclosure
Required for homes built before 1978Federal law requires lead paint disclosure and 10-day testing period for pre-1978 homes
Septic System Information
RecommendedProvide maintenance records, pumping history, and location of tank and leach field
Underground Storage Tanks
Required if presentMust disclose presence of oil tanks or other underground storage, even if removed
Flood Zone Status
Required if in flood zoneDisclose if property is in FEMA flood zone and flood insurance requirements
Disclose Everything
Vermont law requires sellers to disclose all known material defects. "Material" means anything that would affect a buyer's decision or the property's value. When in doubt, disclose it. Failure to disclose known defects can result in lawsuits after closing, even years later. It's better to be over-transparent than to hide issues that will come back to haunt you.
Path to Closing
What happens between accepted offer and closing day
Offer Accepted
- Contract executed by both parties
- Earnest money deposited to escrow
- Buyer applies for financing if applicable
Inspection Period
- Buyer conducts home inspection
- Inspection report delivered to seller
- Negotiate any repair requests or credits
- Inspection contingency removed or deal cancelled
Appraisal
- Lender orders appraisal
- Appraiser inspects property
- Appraisal report delivered
- Negotiate if appraisal is low
Final Loan Approval
- Underwriter reviews full buyer file
- Final loan commitment issued
- Financing contingency removed
- Closing date confirmed
Final Walk-Through
- Buyer verifies property condition
- Ensures agreed repairs completed
- Checks that included items remain
- Utilities still working
Closing
- Sign closing documents
- Buyer funds purchase
- Title transfers to buyer
- You receive your proceeds!
Closing Day
At closing, you'll sign the deed transferring ownership to the buyer, along with various closing documents. You'll receive your proceeds via wire transfer or check (wire is faster and safer). Bring photo ID, all house keys, garage door openers, and any relevant documentation. Your agent and attorney will guide you through the process. Congratulations—you've successfully sold your Vermont home!
Ready to Navigate Your Home Sale?
Our experienced agents are skilled negotiators who will fight for your best interests from offer to closing. Let us guide you through every step of the process.