How to Handle Offers When Selling FSBO

You Got an Offer — Now What?

An offer coming in on your FSBO listing is exciting. It’s also the moment where mistakes get expensive. The TREC 1-4 contract is a binding legal document, and every blank you initial or overlook carries real consequences.

Here’s how to handle it — from the moment the offer lands to the day you respond to the inspection.

Before Any Offer Arrives

Don’t wait for an offer to start preparing. Do this now.

Read the TREC 1-4 contract. The entire thing. It’s written in plain English, not legalese. You can download it from the Texas Real Estate Commission website. Read it twice. Understand what every paragraph commits you to.

Know your bottom line. Even without paying a listing commission, you still have closing costs — title policy, prorated taxes, HOA fees, possible buyer agent compensation. On a $400,000 home, expect $8,000-$12,000 in seller costs minimum. Know exactly what net proceeds you need.

Understand the key dates. Every TREC contract revolves around these deadlines:

• Effective date — when the last party signs (this starts all other clocks)
• Option period — buyer’s window to inspect and back out (details here)
• Earnest money deadline — typically 3 days after effective date
• Financing contingency deadline — when the buyer must secure loan approval
• Closing date — when you sign at the title company and get paid

Consider hiring a real estate attorney. TREC’s own contract forms include a warning that they’re “intended for use only by trained real estate license holders.” That’s not marketing — it’s a legal disclaimer. A real estate attorney will cost $500-$1,500 for the transaction and can review every document before you sign. For a FSBO seller handling a six-figure transaction, that’s cheap insurance.

Sell your home for just 1% commission.

Contract Review Checklist

When an offer hits your inbox, resist the urge to look at the price first. Read the entire contract. Then go through this checklist:

Verify the basics:

• Current TREC contract version (check the upper right corner — outdated versions can create problems)
• Correct party names and legal description of the property
• Any exclusions listed (fixtures, appliances, items you’re keeping)

Check the money:

• Earnest money amount — is it reasonable? In Houston, 1% of sale price is standard
• Option fee amount — higher is better for you
• Down payment + financed amount + earnest money = sale price (do the math — errors happen)
• Financed amount matches the financing addendum
• For cash offers, request proof of funds — a bank statement or financial advisor letter dated within 30 days

Review the terms:

• Title company info is complete (if blank, you should specify your preferred company)
• Option period days — 7-10 days is typical in Houston; 14+ gives the buyer a lot of room
• Who pays for the owner’s title policy (seller pays in most Texas transactions)
• Survey — existing vs new, who pays
• Closing date and possession date — are they the same? If not, is there a leaseback?
• Special provisions — read every word; this is where unusual terms live

Confirm completeness:

• All signature and initial lines filled in
• All addenda referenced in the contract are actually attached
• Updated preapproval letter (not the one from two months ago — circumstances change)

How to Negotiate

Remove the emotion. This is a business transaction. The buyer isn’t insulting your home — they’re trying to get the best deal, same as you.

Never reject an offer outright. Even if the price is $40,000 below where you need to be. A flat rejection kills the conversation. Instead, counter at your number. If they’re serious, they’ll come back. If they’re not, you’ve lost nothing.

A small counter keeps the door open. Coming down $2,000 on a $400,000 home signals you’re willing to negotiate without giving away the farm. It invites a response.

Not everything is about price. You have multiple levers:

• Closing date — a buyer who needs to close in 21 days vs 45 days might accept a higher price for the speed
• Seller concessions — contributing to closing costs instead of dropping the price keeps the sale price (and your appraisal) intact
• Repairs vs credits — offering a credit at closing instead of making repairs saves you time and hassle
• Leaseback — if you need extra time after closing, a seller’s temporary residential lease gives you breathing room (but avoid agreeing to let the buyer move in before closing — that’s almost never a good idea)

“Accept now or we walk” pressure. If a buyer gives you a deadline of a few hours, take a breath. If they genuinely want your house, waiting until tomorrow won’t kill the deal. Pressure tactics usually mean they’re afraid you’ll get a better offer — which means your home is priced right.

Appraisal gap strategy. Decide in advance: if the home appraises below the contract price, will you reduce, split the difference, or hold firm? Having this figured out before it happens means you negotiate from strategy, not panic. This comes up most often with financed buyers.

Responding to the Inspection

Expect a repair request. Almost every resale home in Houston has something — a aging water heater, minor foundation movement, worn weatherstripping, a slow drain. The question isn’t whether you’ll get a list. It’s how you handle it.

Know what’s reasonable. In the Houston market, $3,000-$5,000 in legitimate repair items is common on a home built before 2010. When a buyer asks for $8,000, the real number is usually closer to $3,000-$4,000 once you strip out cosmetic complaints and deferred maintenance that isn’t a defect.

Your three options:

1. Repair — agree to fix specific items before closing (make sure you use licensed contractors and get it re-inspected)
2. Credit — offer a dollar amount at closing so the buyer handles repairs themselves (simpler for you)
3. Hold firm — decline the repair request entirely (risky but appropriate when the request is unreasonable)

A broker who’s handled hundreds of inspections can tell you in five minutes which items are legitimate concerns and which are padding. That’s experience you’re giving up as a FSBO seller — but you can offset it by getting your own pre-listing inspection and knowing your home’s condition before the buyer does.

If negotiations fall apart during the option period, the buyer terminates and gets their earnest money back. You keep the option fee. Your home goes back on the market. It’s frustrating, but it’s not the end.

Sell your home for just 1% commission.

When FSBO Gets Overwhelming

Handling offers, negotiating contracts, and managing inspections is the hardest part of selling on your own. The FSBO process from contract to close has dozens of steps, and missing one can cost you thousands — or kill the deal entirely.

If you want professional representation without the traditional 6% commission, a discount realtor in Houston or a 1% listing broker can handle the entire negotiation for a fraction of the cost. You get the expertise. You keep more of your equity.

That’s what we do at Creekstone. Full service, 1% listing fee. Every contract, every negotiation, every inspection response — handled by an experienced broker.

Related Guides

• How to Sell Your House Without a Realtor in Houston
• How to Price Your Home for Sale by Owner
• How to Market Your FSBO Home in Houston
• How to Show Your Home as a FSBO Seller
• FSBO Contract to Close Guide
• FSBO vs Realtor: Is Selling Without an Agent Worth It?
• How to List on MLS Without a Realtor
• Option Period in Texas Real Estate
• Earnest Money vs Option Fee in Texas
• Third Party Financing Addendum Explained
• Discount Realtor Houston