When you receive a written offer from a potential buyer, your real estate agent will first find out whether or not the individual is prequalified or preapproved to buy your home. If so, then you and your agent will review the proposed contract, taking care to understand what is required of both parties to execute the transaction.

The contract, though not limited to this list, should include the following:

1. Legal description of the property
2. Offer price
3. Down payment
4. Financing arrangements
5. List of fees and who will pay them
6. Deposit amount
7. Inspection rights and possible repair allowances
8. Method of conveying the title and who will handle the closing
9. Appliances and furnishings that will stay with the home
10. Settlement date

At this point, you have three options:

1. Accept the offer as is
2. Counter offer (accept with changes)
3. Reject the offer

Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with your real estate agent right away.

Most offers to purchase your home will require some negotiating to come to a win-win agreement. Your real estate agent is well versed on the intricacies of the contracts used in your area and will protect your best interest throughout the bargaining. Your agent also knows what each contract clause means, what you will net from the sale and what areas are easiest to negotiate.

Some negotiable items:

1. Price
2. Financing
3. Closing costs
4. Repairs
5. Appliances and fixtures
6. Landscaping
7. Painting