Episode 03
The Seller’s Three Offers
Higher price with more contingencies, lower price with stronger financing, or cash. Compare the estimated net with your own numbers, choose one, then see what Michael would talk through.
By Michael O’Neal, Broker · REALTOR®, The Michael O’Neal Group, Keller Williams Realty Northeast · Published Oct. 28, 2026
You listed your home at $650,000. Three offers arrive on the same day. Each one is better in a different way. Read the terms, adjust the numbers to match your own situation, then choose the one you would accept.
1. The three offers
Offer A: the highest price
- Financing
- Conventional loan, 5% down. Lender prequalification letter.
- Financing contingency
- Third Party Financing Addendum: the buyer can end the contract if the loan or the property is not approved by the lender.
- Appraisal
- No appraisal addendum. If the appraisal does not satisfy the lender, the buyer can walk away or ask to renegotiate.
- Option period
- 10 days.
- Seller concessions
- $10,000 toward the buyer’s closing costs.
- Closing and possession
- 45 days; possession at funding.
Offer B: stronger financing evidence
- Financing
- Conventional loan, 25% down. Written credit approval from the lender, subject to the appraisal and final conditions.
- Financing contingency
- Third Party Financing Addendum.
- Appraisal
- Appraisal addendum: the buyer covers a shortfall of up to $20,000 and cannot terminate over the appraisal within that amount.
- Option period
- 5 days.
- Seller concessions
- None.
- Closing and possession
- 30 days; possession at funding.
Offer C: cash
- Financing
- Cash, with a proof-of-funds letter from the buyer’s bank.
- Financing contingency
- None.
- Appraisal
- Not required by a lender. The buyer could still order one.
- Option period
- 3 days.
- Seller concessions
- None.
- Closing and possession
- 14 days; possession at funding.
2. Compare the estimated net
| Item | Offer A | Offer B | Offer C |
|---|---|---|---|
| Purchase price | |||
| Seller concessions | |||
| Days to close | |||
| Brokerage compensation you agreed to pay | $0 | $0 | $0 |
| Owner’s title policy (TDI basic rate estimate) | $3,571 | $3,472 | $3,324 |
| Seller concessions | $10,000 | $0 | $0 |
| Escrow and other closing costs | $0 | $0 | $0 |
| Carrying costs until closing | $0 | $0 | $0 |
| Total estimated costs | $13,571 | $3,472 | $3,324 |
| Estimated net before your loan payoff | $651,429 | $641,528 | $611,676 |
| If the appraisal comes in low (enter an appraised value above) | — | — | — |
How the estimate works
- Estimated net = purchase price − brokerage compensation − owner’s title policy − seller concessions − escrow and other costs − carrying costs.
- The owner’s title policy uses the Texas Department of Insurance basic premium rate for each price (sellers customarily pay it in Texas, but it is negotiable). Your title company’s figures will differ slightly.
- Carrying costs = your monthly figure × days to close ÷ 30. Nothing is filled in for brokerage compensation, closing costs or carrying costs: they are yours to enter.
- Your loan payoff is not subtracted because it is the same under every offer. Taxes and HOA dues are prorated at closing under every offer.
- The appraisal row is a what-if, not a prediction. Enter an appraised value: Offer A shows the net if you lower the price to that value (the buyer could also walk away or pay the difference); Offer B’s buyer covers a shortfall of up to $20,000; Offer C has no lender appraisal requirement.
With nothing entered, the example shows Offer A at an estimated $651,429 before brokerage compensation, closing costs, carrying costs and your payoff. Estimates only, not a net sheet: your title company prepares the actual figures. For a full net sheet on one offer, use the seller net sheet calculator.
3. Which offer would you accept?
Choose one before you read Michael’s take. There is no single right answer: it depends on your timing, your carrying costs and how much certainty is worth to you.
What Michael would talk through with you
Offer A: The biggest number on paper
- I would call the lender before anything else: how far along is this buyer, and what could still stop the loan? A prequalification letter is a starting point, not a commitment to lend.
- If the appraisal comes in under $665,000, this buyer can walk or ask you to come down. Enter an appraised value above to see what a lower price does to your net.
- The $10,000 in concessions and 15 more days of carrying costs than Offer B come off the top. Even so, if recent sales clearly support the price, Offer A can still net the most.
- What I would ask for in a counter: appraisal protection like Offer B’s, a shorter option period or a closer closing date.
Offer B: Less on paper, more evidence
- A written credit approval and 25% down are stronger evidence than a prequalification letter. It is still not a guarantee: final underwriting, the appraisal or a change in the buyer’s job or finances can still stop a loan.
- The appraisal addendum matters most here. If the appraisal comes in short by $20,000 or less, the buyer has agreed to cover it instead of walking away.
- Thirty days and no concessions keep more of the price in your pocket than the headline suggests. Compare the estimated net, not just the price.
- What I would confirm in writing: where the down payment is coming from and the exact appraisal terms in the addendum.
Offer C: Fewest moving parts
- No lender and no appraisal requirement, and you could be done in 14 days. If speed or certainty is worth real money to you, that has a dollar value, and only you can put it on it.
- Cash is still not a guarantee of closing. The buyer can end the contract during the option period, and a proof-of-funds letter should be checked before you rely on it.
- The gap between this offer and the others is the price of that speed and simplicity. Look at the estimated net, then decide whether the certainty is worth it in your situation.
- What I would ask for in a counter: a higher price, a shorter option period, or a few days of possession after closing if you need them (in writing).
Countering
- You are not limited to accepting one offer as written. Sellers in Texas commonly counter, and a counter can ask for a better price, terms or timing.
- Be careful when you counter more than one buyer at the same time: two accepted contracts on one house is a serious problem. Talk with me before you send more than one counter.
- Once you counter, the original offer is gone. The buyer can accept, counter back or walk away.
General education, not legal advice. A preapproval or a cash offer is not a guarantee that a sale will close.
Your offers
Have more than one offer, or expect to?
Michael will walk through the terms with you: the financing, the appraisal language, the option period and the timing, and what each one is likely to net you. Do not attach offers or documents here; he will contact you.
Talk with Michael
Michael O’Neal, Broker · REALTOR®
The Michael O’Neal Group · Keller Williams Realty Northeast
832-797-3780 · [email protected]
Sources: TREC Third Party Financing Addendum (TREC No. 40-11) · TREC Addendum Concerning Right to Terminate Due to Lender’s Appraisal (TREC No. 49-1) · CFPB: prequalification and preapproval letters are not guaranteed loan offers · Texas Department of Insurance title insurance basic premium rates (Commissioner’s Order 2025-9697)