Understanding Offers & Terms

The headline number — but not the only number that matters. Evaluate it alongside financing type, contingencies, and timeline. A cash offer $15K below asking can outperform a financed offer at full price.

A good-faith deposit held in escrow, typically 1–2% of the purchase price. In Texas, this money is at risk if the buyer walks outside of their contingency windows. A larger earnest deposit signals a more serious buyer.

Unique to Texas — buyers pay an option fee (typically $100–$500) for an unrestricted right to terminate during the option period (typically 5–10 days). During this window, the buyer can walk for any reason and only lose the option fee.

Protects the buyer if they cannot obtain financing. If the loan fails, the buyer can exit with their earnest money. Pre-approval letters and proof of funds documents help evaluate financing risk before accepting.

Typically 21–45 days from acceptance for financed buyers; 7–21 days for cash. A faster close benefits sellers with bridge financing or simultaneous buy/sell situations. A flexible close can attract buyers who need more time.

When you hand over the keys — usually at or shortly after closing. Sellers needing extra time to move can negotiate a leaseback: remaining in the home for a set period after closing and paying rent to the new owner.

The buyer can only proceed if their current home sells. This significantly increases risk for you as a seller. In a competitive market, accepting a home sale contingency without a kick-out clause is rarely advisable.

In competitive markets, buyers may offer to cover the gap between their offer price and the appraised value — up to a specified amount. This protects you from a low appraisal killing your deal.